Open banking is a financial system that allows consumers to authorize access to their banking data in real time to various financial service providers, such as account aggregators, online banks and others.
Open banking relies on innovative technologies such as blockchain, APIs, SCA or AI, and has enabled a genuine revival of the financial sector. Automated budgeting tools, peer-to-peer lending, online banking, savings management and even wealth management applications have since appeared. As a result, customers now have greater control over their financial data and a more advanced and personalized choice of financial services.
Open banking was at the source of financial and banking innovation and has opened-up competition in this sector. Companies, not only traditional banks, can now offer high-performance financial services by accessing customers’ financial data. In fact, open banking has significantly improved the customer experience. Companies’ access to more detailed financial data has enabled them to offer more personalized services tailored to their customers’ needs. Finally, open banking is also a means to ensure total transparency of financial data and a way to build trust with customers.
But when we talk about financial data, we do not only take bank data into account. We must also mention insurance data, or data related to investments. And the security of this data and its field of application are issues that need to be solved. How should they be protected; can they be monetized? etc…