In 2018, corporate finance and small business services grew significantly thanks to the development of the FinTech industry, which has always sought to improve commercial payments, accounting, treasury and financial management. APIS and open banking were also a remarkable part of the growth trend.
Strengths of open banking
The strength of open banking resides in a model that allows customers to share their financial data with non-banking third parties, in order to provide customers with a better banking experience. Open banking grew in use and followers mainly in Europe, and has gained strength even in the United States, where the regulatory requirements for FLS to open data don’t exist yet.
New model, new concerns
With this new model, new concerns have emerged about the trust in how financial institutions will continue to manage the security of the data that is shared between the systems. In addition, a recent Accenture study shows that two-thirds of consumers wouldn’t share their personal financial data with non-bank providers. The challenges are not simple, many banks face several challenges to become commercial models enabled for open APIs, in addition Their innovations are usually focused on the financial institutions themselves and not on the users.
Open banking and financial APIs promise to continue growing this coming year. The growth experienced during 2018 means that banks around the world can keep up with customer demands and improve their experience as customers efficiently. Everything indicates that banks will have to promote the innovation of open banking by allying with Fintech companies and using their data sets, in order to improve their existing products and take advantage of innovative products.
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