Hardening pay by bank infrastructure with open-API bank data

Not all bank linking experiences are created equal. In fact, many still use brittle, unsustainable practices like screen scraping to access the financial data needed to verify account ownership, conduct balance checks, and initiate payments. 

Businesses using pay by bank solutions that are powered by screen scraping are exposed to higher risk and unreliable performance that erodes trust and drives unnecessary costs.

Instead, modern pay by bank solutions establish API-based financial connections that protect credentials and keep data accurate in real time. If you’re looking to successfully scale bank payments, this is the secret to success.  

This article explains the difference between screen scraping and API-based bank connections, so you can understand what to look for when choosing a provider. 

What is screen scraping? 

Screen scraping is a method where customers enter their online banking credentials into a third-party application. The app then uses those credentials to log in to the customer’s bank account, mimic their session, and copy data directly from the bank’s website.

For example, when a customer links their bank account to pay by bank on a merchant’s website, they enter their online banking credentials into the embedded checkout. Those credentials are then used behind the scenes to log in to the customer’s bank, copy account and balance data, and initiate the payment.

The issue with screen scraping is that it depends entirely on the bank’s web interface to access account information.

What are the risks of screen scraping?

Screen scraping is unreliable because even small changes to a bank’s website, login flow, or security settings can instantly break the connection. This leads to failed data pulls, poor user experiences, and constant maintenance for providers.

It also creates serious security and privacy risks. Customers must share their login credentials with third parties, giving up control over how that sensitive information is stored, transmitted, or used. This lack of visibility increases the risk of fraud and data breaches.

For these reasons, the industry is steadily moving away from screen scraping and adopting secure, API-based connections that protect consumers and ensure consistent access to financial data.

If screen scraping is unreliable, why do some providers still use it?

In most cases, it’s because screen scraping is cheaper and easier. More specifically, the motivations behind screen scraping are usually: 

1. Data gaps. Some providers use screen scraping to access information not available through bank APIs, allowing broader coverage without official integrations.

2. Lower short-term costs. Building secure, API-based connections requires time, partnerships, and compliance investment. Screen scraping avoids that upfront effort.

3. Outdated infrastructure. Some systems were built before open banking standards and still rely on legacy methods like screen scraping because modern API support wasn’t originally built in.

In short, screen scraping is an inferior data access method, but you still have to watch out for providers marketing their solution as “API-based” or “open banking compliant” when they actually rely on screen scraping behind the scenes.

Next, we break down a far more reliable standard for financial data access: API-based bank connections. 

What are API-based financial connections? 

API-based financial connections let customers link their bank account without sharing their login credentials. Instead, they are redirected to their bank’s official website or app to sign in. After they confirm access, the bank issues a secure token that allows permissioned data sharing without exposing the customer’s username or password.

The most secure and widely used API-based standard for financial data access is called open authorization (OAuth). Because the connection happens directly between the bank and the provider, OAuth provides a highly reliable experience. It doesn’t break when banks update their systems or when users change their passwords. And it enables longstanding connections that consumers, businesses, and institutions trust.

The economic role of banks

Banks play an important role in the data access ecosystem. They maintain the systems that keep accounts secure, support identity and authentication, and ensure that customer information is accurate and protected. This work requires constant investment and oversight.

When a bank provides safe, permissioned access to data, it makes sense that they participate in the economics of that access. Paying for secure connectivity supports the institutions that make modern financial experiences possible and encourages continued improvements in the underlying infrastructure.

This is very different from outdated practices like screen scraping. Scraping avoids the bank and relies on unapproved access that introduces risk for consumers and businesses. It may appear convenient, but it does not support a reliable or sustainable system.

A healthier future for open banking comes from cooperation between banks, fintechs, and the businesses that rely on these connections. Recognizing the role banks play is part of building a safer and more dependable ecosystem for everyone.

Aeropay’s leading approach to bank linking 

Your access to the benefits of financial connectivity can only be as strong as the data powering it. At Aeropay, we learned this first-hand.

As a payments company, we experienced the limitations of third-party aggregators that made bank connectivity unreliable and unpredictable. Instead of accepting that as the norm, we built Aerosync, a new standard for financial data access that focuses on conversion, trust, and reliable data access.

Aerosync moves beyond the inefficiencies that have held this industry back. Outdated methods like screen scraping create friction for users and uncertainty for businesses. They slow down onboarding, break when banks update their systems, and rely on credentials that were never meant to be shared.

Aerosync replaces those fragile connections with direct, verified access through open authorization. Users connect their accounts in seconds by logging in directly with their bank in a branded experience trusted by tens of millions. 

The value of Aerosync can be measured in results like: 

• Higher success rates with OAuth-based connections and a fast, branded linking flow
• Fewer payment failures, with 43% fewer R03 and 66% fewer R04 ACH returns.
• Broader coverage across 12,000+ financial institutions, including thousands using OAuth.
• Live, accurate data through real-time balance checks and auto-refreshing connections.
• Built-in compliance with biometrics, MFA, and bank-level security.

‍See how Aerosync can help you build an API-first experience that makes pay by bank more successful at scale.