Open Banking Makes the World Go Round. Don’t fall behind!

In modern finance, the open banking paradigm comes with a sense of inevitability. New standards introduced in Europe by the revised Payment Services Directive (PSD2) require banks to share account data with regulated Third Party Providers (TPPs) for payment initiation. The new regulatory framework is a revolutionary step towards seamless integrations, streamlined processes and actionable insights available within seconds and protected from cyber threats – in PayTech and beyond. This means not only giving customers access to new digital products, but also creating a thriving ecosystem of interconnected financial solution providers.

Data is rocket fuel for business, no doubts about it. With open banking APIs, financial institutions can use banking data to make more informed decisions – faster. Think insurance underwriting, mortgage services or loan applications, just to name a few use cases. All that is possible, because at its core, open banking is an enabling technology. Open banking services give customers more control over personal data and enable them to use that data to improve their credit scoring or find better deals and easily switch between providers. Moreover, lower costs, greater usability and faster services are the biggest incentives for using FinTech products, so open banking development can do wonders to customer acquisition and retention.