BANKING
data to improve the speed and accuracy of decision-making in credit . This can give customers a fairer assessment based on spend and lenders reduced risk of delinquency when lines of credit are approved ."
The bottom line Open banking is a significant development with the potential to revolutionise the financial services industry . It offers many benefits for consumers , banks and other providers , with data playing a central role in enabling these improvements .
Data is the lifeblood of the initiative , as it ' s through data , fintechs and other providers can create products and services that interact with the finances of bank customers . " The sharing of that data promises to deliver innovative new services and spur competition ," stated Prakash Sinha , Technology Executive and Evangelist for Radware .
" In total , Open Banking provides guidance on how banks can modernise their approaches and improve service to customers . However , each bank will take its own approach in practice to make these projects work for their business ," said David Andrzejek , Growth Strategy at DataStax . " The role for data here is critical , as it is the big opportunity to deliver on all the promise that Open Banking has ."
Data also can improve financial inclusion , as it can help banks identify and assess new customers more efficiently . In addition to providing alternatives to credit scoring , fintechs can also use data to develop products and services that are more relevant to specific demographics .
According to Ian Johnson , SVP and MD for Marqeta in Europe , " Open banking can also boost visibility into customer purchasing
“ IT ' S EARLY DAYS FOR OPEN BANKING , WITH MANY OF THE MORE INTERESTING USE CASES STILL EMERGING ”
MARIE WALKER CO-FOUNDER OF OPEN FUTURE WORLD
" Innovation and digital transformation will be critical to build the banking model of the future , and a robust fintech ecosystem is one of the building blocks required to support this journey ," said Matt Tegnwall , General Manager of Fraud and Security Solutions at Verint Systems .
While there are some challenges to overcome , open banking is likely to play an increasingly important role in the years ahead .
Overall , one thing is clear , according to Sam Strasser , CEO at Treasure , " The environment banks are operating in today will undoubtedly change with the adoption of open banking ."
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