Open Finance is generating a wave of innovation and investment while providing fundamental changes to how financial products and services are consumed. This is happening despite some people feeling the concept is too technical. For many decades to come, Open Finance has the power to fully develop our financial ecosystems in immensely beneficial ways.
Open Finance can democratize the flow of information and will allow transactions to be made at a lower cost. This will foster institutional efficiency and create new ways to add value for the consumer. Simultaneously, it will put the user at the centre of the financial services industry rather than at the periphery—which has been the case for the past century.
This is possible because the users, the rightful owners of their data, will be able to give third parties permission to access their data and perform transactions on their behalf.
Although this sounds positive, we should still ask ourselves the following question: Who should I trust with my data. Or, perhaps, more importantly, who should I trust to perform transactions on my behalf?
This content was originally published on August 2021 for participants of the Open Banking Exchange Membership Programme. It consisted of the Open Banking Exchange’ sole opinion as of its date of publication and was intended for general information of its members. It is now available for visitors to the Konsentus website. To access this content, please complete the form below.
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