App-to-app and Open Banking: why It changes everything for the customer experience

When a user connects their bank account via Open Banking, one step is essential: they must authenticate with their bank. There are two possible flows: being redirected to the bank’s website, or being redirected to their banking app.

This second case is called app-to-app. And it radically changes the user experience.

A new way to authenticate

At the launch of Open Banking, redirection to the bank’s website was the norm. This quickly became tedious, even discouraging: remembering login details or having to retrieve them, entering them on a small screen… so many steps leading to drop-offs.

Today, the vast majority of banks have adopted app-to-app.

The result is a user journey that is:

• Faster: the user is automatically redirected to their already-installed banking app.
• Simpler: they log in with the methods they already use every day (fingerprint, FaceID, unlock pattern).
• Safer: biometrics reinforce security while reducing typing errors or the need to remember passwords.

Some banks add an extra SMS validation step, but either way, the authentication journey begins in a familiar and reassuring environment.

App-to-app on mobile… and even on desktop

App-to-app isn’t limited to smartphones. When a user starts their aggregation journey from a computer, Algoan Transaction Data offers a solution to bring the benefits of mobile: the QR code.

The user:

• scans the code displayed on screen with their smartphone,
• is redirected to their bank’s mobile app,
• and once authenticated, can continue their original journey on the computer.

In summary

• If the user has installed their bank’s app on their smartphone, they can be automatically redirected to it,
• They authenticate with their usual method (biometrics, PIN, or SMS),
• Then return to their original journey.

Depending on the phone, browser, and the bank’s chosen setup, the experience may vary slightly but remains smooth and natural.

Conclusion

With app-to-app, Open Banking has evolved from a journey often perceived as heavy and cumbersome into a smooth, fast, and secure experience. App-to-app has become the de facto standard, helping make Open Banking not only secure, but also pleasant and natural for users.

For businesses integrating Open Banking, it’s also a concrete lever to reduce drop-offs and improve conversion rates, by offering users a simpler and more familiar journey.

Groover Anderson, Product Manager at Algoan.