How Open Finance Is Leading to a New Era of Bank-Customer Relationships | by Michel Kilzi | Feb, 2022

Marion Steward

Moving from Open Banking to Open Finance, what does the future look like?

Photo by Skitterphoto from Pexels

Open Finance caters to the evolving needs of customers — Immediacy and Personalization

We are increasingly witnessing the syndrome of immediacy — Users need a financial service in a very specific contextual status and immediately.

The development of open ecosystems will intensify banking fragmentation. For example, users might choose from different Fintech, or Financial Institution, a separate financial service for their shopping experience and probably a different one for their mortgage, or their saving aspirations.

The Open Data economy can be understood through a simple equation —

Access to data + Smart financial service design = Higher perceived value/ Higher adoption

Access to data supports the decentralization of finance, which opens new avenues for:

  • more transparency into the eco-system
  • optimized pricing models
  • reduced superfluous costs passed to customers
  • optimized risk for financial institutions
  • and finally, optimized individual financial footprints

In my opinion, Open Finance players will avail frictionless and seamless delivery of financial services and take ownership of the “banking” relationships as they start upscaling the perceived value in the lives of individuals and SMEs.

  • Re-evaluate the operating models of choice
  • Invest in enhanced data discovery models

https://medium.datadriveninvestor.com/how-open-finance-is-leading-to-a-new-era-of-bank-customer-relationships-2af308dac417

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