The State of Open Finance - Jan-Feb 2023 Roundup
Updated: Mar 7
The financial industry started the new year with the groundbreaking approach of open finance – an innovative paradigm that has captivated banks, financial institutions, and non-banking players alike, who are all eager to explore new revenue models that can provide a more inclusive and transparent financial system. This shift is due in part to regulators who are re-evaluating their positions to enhance the user experience and provide value-added solutions, while also prioritising the accountability and data protection aspects that come with the use of open data.
Get your learning hats on, because we've got the scoop! Our full-length Jan-Feb 2023 roundup report will give you the low-down on all the exciting activities that spell out a world of possibilities for the growth of open finance!
The first couple of months in 2023 were marked by a veritable boom in open banking payments, with open banking technology fueling a host of digital payment innovations. From cross-border B2B payments to virtual repayment plans for debts, the open finance realm is opening doors to more convenient, connected, and cost-efficient payment experiences. We're also seeing a sharp uptick in the use of open banking across various domains, including:
Personal finance management: Amidst the current macroeconomic climate, consumers are placing greater importance on their financial well-being, which is where open banking comes in to save the day. By leveraging open banking-powered PFM solutions, users can gain a complete and comprehensive understanding of their financial health. Account aggregation, actionable insights, and personalised feedback are just a few of the many tools at their disposal.
Customer onboarding: Customer onboarding is the bread and butter of any financial service, and getting it right is key to making a lasting impression and keeping customers coming back for more. By beefing up entry point fraud controls, open banking technology is ensuring robustness and a sense of security in the onboarding process, unlocking the power of accurate, real-time data that one can trust.
Utilisation of APIs for data sharing: The debut of cloud solutions by open finance infrastructure players has revolutionised the way we access financial data. Today, the open finance ecosystem is experiencing a new era of collaboration, bringing together compliance, privacy, and data-sharing for improved liquidity management as APIs receive renewed attention.
Open banking is more than just a buzzword - it's a game changer for both consumers and providers alike. From smoother, more personalised experiences to a full suite of payment options, open finance is making the formal financial system more accessible and user-friendly than ever before. This increased accessibility is not only expanding the market opportunity for financial services but also paving the way for a more profitable future.