By providing secure access to financial data, open banking is creating fertile ground for new products, services, and ultimately, a more dynamic and customer-centric ecosystem.
Open banking is a financial services term referring to the practice of third-party financial service providers using open APIs to access consumer banking, transaction, and other financial data from banks and other financial institutions. This enables the development of innovative financial products and services, such as account aggregation, personalized financial advice, and streamlined payment initiation.
Driven by regulatory mandates like PSD2, it breaks down traditional silos of financial data, fostering competition and empowering consumers to take control of their financial information.
Open banking represents a paradigm shift in financial services. It offers card issuers the opportunity to create personalized customer experiences, develop new revenue streams, and enhance customer loyalty. By leveraging open banking APIs, banks can gain deeper insights into customer spending habits, offer tailored financial products, and integrate with third-party services to provide a seamless customer journey.
The ability to utilize the data that open banking provides, when handled correctly, can lead to many new and profitable products.
Explicit Selection provides expert guidance to card issuers navigating the complexities of open banking. The first step is to benchmark, analyse, evaluate and suggest what the market is doing and how to respond to this.
Then, we enter a phase where comprehensive risk assessments are conducted, identifying potential vulnerabilities and threats associated with open banking APIs. We assist in implementing robust security protocols, ensuring secure data sharing and compliance with regulatory requirements. We help you navigate the complexities of API integration, data governance, and customer consent management.
As your technical partner, we can also enhance your development team with implementation support, and ongoing monitoring and optimization.
Lastly, we provide customer education and support, helping you communicate the benefits of open banking while addressing security concerns. We can advise on how to best utilize the data that open banking can provide.
Open banking centers on standardized and secure API access to financial data, driving innovation through a regulated ecosystem of third-party providers while prioritizing data security, consumer consent, and the development of new payment and information services. Its success depends on interoperability, clear regulations, and offering a trusted environment for both consumers and businesses.
Ensure you can communicate securely with third party service providers by setting common technical standards.
Protect sensitive data that is shared between tow parties by implementing robust security measures.
Create an environment where new financial products and services can function together.
Design of intuitive and transparent consent flows that allow users to easily understand and manage who has access to their data and for what purpose.
Develop and adapt regulations to manage open banking ecosystems, and define the roles and responsibilities of different participants.
Understand the most appropiate business models for banks and Third Party Providers, including API access fees, revenue sharing, and value-added services.
Curious to know more?
Contact us for a consultative talk
