TECHNOLOGY
“ Open Finance , which broadens out the types of accounts accessed , could offer yet more benefits for both customers and companies ,” adds Wilson . He cites the following :
• Aggregated savings and investment data , bringing more holistic financial oversight to consumers .
• Granting access to data that can bring value-added services , such as financial advice , “ robo-advice ”, better ID verification , and KYC .
• Empowering third parties to carry out fund transfers between customer accounts ( savings , ISAs , investments , etc ) and initiate account switching .
Security : The elephant in the room Carried out in its most ideal form , then , Open Finance ’ s benefits for both customers and companies makes it an attractive proposition . However , there remains what McKinsey calls the topic ’ s “ elephant in the room ”, security . Data sharing in any capacity should be a central concern , with each dataset ’ s value accorded an appropriate level of protection , and customers need to understand how and why some data is used . “[ I ] nformed consent requires understanding the implications of sharing before approving — no small feat when the reflexive clicking of ‘ I Agree ’ on an unread set of terms and conditions is standard ,” said McKinsey in ‘ Data sharing and open banking ’. Curry believes that cybersecurity and the protection of data form the major concerns for fintechs and banks
“ Consumers are increasingly demanding financial data aggregation services through APIs because it makes personal financial management much easier ”
THOMAS J . CURRY CO-CHAIR OF THE BANKING AND FINANCIAL SERVICES GROUP AT NUTTER AND FORMER US COMPTROLLER OF THE CURRENCY
126 May 2021