The Open Ecosystem - Open Banking vs Open Finance vs Open Data??
Arthur Bedel ?? ??
Global Payments Leader | Co-Founder of Connecting the dots in Payments... | FinTech Advisor | Ex-Pro Tennis Player
The “Open Ecosystem” — Open Banking, Open Finance, and Open Data transform Payments & Financial Services altogether??
It’s all about data — by enabling seamless data sharing, open banking, open finance, and open data supercharge financial services, stimulate global economic growth, foster innovation and increase competition in FinTech & Payments.
Open Banking vs Open Finance vs Open Data ??
?? Open Banking — it refers to the practice of allowing 3rd-party providers to access financial (mostly banking-related) data via APIs, with consumer consent, and offer banking services.
Key Features:
?? Standardized APIs for data sharing and payment initiation
?? Secure data sharing with robust consumer protection measures
?? Participation from a wide range of financial institutions, including traditional banks and FinTech companies
?? Open Finance — it extends the principles of Open Banking to a wider range of financial sectors, including insurance, investments, pensions, credit, cards, lending and more.
Key Features:
?? Broad data sharing beyond banking data, covering insurance policies, pension plans, investment portfolios, and more
?? Greater consumer control over their financial data
?? Enhanced regulatory frameworks for secure data sharing and consumer protection
?? Open Data — it allows unrestricted access; sharing and use of publicly available data by anyone, often provided by governments and large organizations impacting all industries, i.e. — health care, energy, commerce, real estate…
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Key Features:
?? Availability of data from various sources, including government and private entities
?? Data provided in machine-readable formats for easy access and use
?? Regulations to ensure data quality, privacy, and security, beyond financial
Leveraging the "Open Ecosystem" in Payments:
?? Open Banking — Use APIs to facilitate seamless, low-cost and faster payments via account-to-account payments, creating new payment solutions
?? Open Finance — Integrate broader financial data to offer comprehensive financial management tools and improve payment services through better risk assessment and personalized financial products
?? Open Data — Utilize diverse data sources to develop innovative payment products, enhance predictive models, and create new business opportunities in the payments industry
All and all, Open Banking, Open Finance, and Open Data are interconnected concepts that collectively aim to transform the financial sector by promoting innovation, competition, and transparency. They provide benefits for consumers, financial institutions, and the global economy by enabling better financial management & fostering new business opportunities
Don’t sleep on the “Open” concept, data is everything ??
Source — 世界银行 , Korea Institute of Finance , Korea Financial Telecommunications & Clearings Institute (KFTC)
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The seamless sharing of data is important. However, how do you square this with ever tighter security requirements? We provide data governance services to numerous financial institutions and understand that even sharing data within a single organization can present challenges.
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5 个月The "Open" concept is revolutionizing the financial industry, and this edition provides valuable insights into its impact on payments Arthur Bedel ?? ??
Senior Enterprise Architect, Solution Designer
5 个月data is everything???? Seamless data sharing????