Open Banking is on the horizon, and once implemented it will change the ways that companies working in the finance sector operate. Although this may sound daunting as a business, Open Banking should be treated as a positive outcome for your business and will allow you to implement new and exciting tools that will drive new lines of business and improve your customer’s lives.
We doubt this is your first time encountering Opening Banking. At its crux, Open Banking allows for further competition among the banks, as well as enhancing customer choice and increasing levels of transparency. So, how will Open Banking impact your business?
The first change that many businesses will see is how Open Banking impacts the sharing of data. Not only will financial institutions (FI’s) decide what happens with data but customers will gain greater control over their data and who it’s shared with. For example, an accounting firm small business customer may instruct their FI to grant their auditors access to its entire banking transaction history, which will then enable the auditors to have access electronically using application programming interface (API). As a business owner, this helps save valuable time and allows for the acceleration and improvement of many business processes by delivering an easier way to access the data that is needed.
The other change that we are already seeing in preparation for Open Banking is further integrations and partnerships between complementary businesses. While this isn’t a new trend in the FinTech sector, in the coming months as we begin implementing changes these integrations will increase and Open Banking specific products and resources will become further commonplace.
It’s important to remember that Open Banking is being implemented to help businesses and their clients with the sharing of data and resources. While this implementation won’t occur overnight, it’s best to be prepared for the future of all of our collective business needs.
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