TECHNOLOGY
Partner : These APIs create a more integrated connection between business partners , suppliers , etc . They offer better security , lower operating costs , and enable API monetisation opportunities .
Public : APIs used by external parties to develop new apps and products . These often facilitate innovative results as a consequence of broader community engagement .
Internal : Only used by developers within a single enterprise , internal APIs offer cost reduction , better efficiency and greater security . However , they also lack the potential with regards to integration and innovation . regarding APIs ’ functionality . “[ In the US ] Section 1033 of the Dodd Frank Act makes it clear that consumers have a right to their financial information . Some progress has been made in developing voluntary standards for APIs but regulatory clarity is needed . The Biden CFPB ( Consumer Financial Protection Bureau ) will likely develop a more concrete regulatory framework for APIs .”
Therefore , it seems clear that , in addition to general clarity regarding data sharing policies , what customers really need are examples that demonstrate why APIs are beneficial and what Open Finance can do for them .
A recent
collaboration between TrueLayer and UK digital bank Monzo provided one such demonstration . With customers using Open Finance as a payment method for online gambling , Monzo needed a solution to protect its at-risk customers by blocking transactions to certain gaming sites . TrueLayer was brought on board to implement an enhanced API capable of notifying the bank whenever a customer with gambling restrictions on their account attempted to pay via Open Finance . TS Anil , Monzo ’ s CEO , praised the API and stated that it was “ simple to build , proven to work , and will help protect hundreds of thousands of people .” The finance industry ’ s accumulation of such examples will be pivotal in convincing consumers that data sharing can be responsible and useful for safeguarding them .
Data sharing through Open Finance is ultimately a path towards greater convenience , better products and services , and significantly cheaper operations for FSIs . Making sure that customers are aware of these benefits , concludes Wilson , will be the aim of the game . “ At the very least , dealing with physical paperwork and documentation in financial transactions will become a thing of the past ."
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