As we all know by now, Open Banking is expanding at an incredible speed around the globe, accompanied by regulatory changes that allow it to provide a more secure and effective response to the demands of society. For a few years now, the financial services industry has been undergoing a radical and increasingly profound transformation, whereby commercial transactions and data consumption go hand in hand as new products and services continuously emerge.
Open Banking is not just some buzzword. It is an absolutely real practice that offers advantages for both the customer experience and industry operators. But what are these benefits exactly? Today, we have tried to answer this question with an infographic, providing a visual and pragmatic summary of the four benefits for each group, which are occasionally clearly linked to each other.
Here are the main reasons for the drive of Open Banking, which is defined as “the practice of providing third-party financial service providers open access to consumer financial data through the use of application programming interfaces (APIs)”. For consumers:
For industry operators:
- Accurate financial data.
- Rapid access to credit.
- Personalised financial services.
- Unification of subscriptions.
- Advances in digitalisation.
- Coexistence with innovation.
- Greater customer retention.
- Accurate predictive models.