Open Finance: Shaping Tomorrow's Economy ??
Arthur Bedel ?? ??
Global Payments Leader | Co-Founder of Connecting the dots in Payments... | FinTech Advisor | Ex-Pro Tennis Player
Open Finance is the next evolution of Open Banking; offering a range of financial services broader than traditional banking??
Open Banking enables banks and financial institutions to open up their data and infrastructure to third-party developers, companies, and individuals through the use of APIs; allows for the sharing of financial information securely between different parties. Some of its key functionalities include:
??Access to Account Information
??Initiate Payments (Account-to-Account)
??Personalized B2C & B2B Product Offerings
??Innovation
??Competition
?? Banking Ecosystems are the latest development of Open Banking, enabling banks to differentiate themselves from their competitors by offering affiliated partner services to specific customer target groups.
?? The combination of Banking and Non-Banking services offerings creates a new type of experience for customers similar to a smartphone 苹果 Store. Customers can choose which partner functions they want and white label them, without having solely one partner.
OpenFinance also leverages Open APIs, offering a broader range of financial services beyond traditional banking — such as investment firms, insurance companies, and lending platforms. Here’s what open finance enables:
??Holistic Financial View — allows individuals to aggregate data from various financial accounts, including bank accounts, investment portfolios, insurance policies, and loans, into a single platform or application
??Cross-Border Integration — enables seamless integration between different financial products and services — ie users can link their investment accounts to budgeting apps or utilize insurance data to receive personalized financial advice
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??Access to Alternative Services — encourages the development of innovative financial products and services — ie alternative lending platforms, peer-to-peer investment networks, automated wealth management solutions
??Enhance Security & Control — individuals have control over which third-party providers can access their financial data and for what purposes
??Financial Inclusion — expanding access to financial services for underserved populations due to the aggregation of data.
The roadmap to delivering Open Finance, first locally and hopefully globally at some stage is not yet defined. It will require a collaborative effort between industries, regulators, and other sectors. Below is a chart by Centre for Finance, Innovation and Technology (CFIT) , outlying a roadmap including key milestones from 2024 to 2027 to deliver Open Finance in the UK ????.
Ultimately, Open Finance is the future and will be tied to various other technological developments — most likely leveraging AI and potentially a great use case for blockchain applications.
Bullish or Bearish? ????
Source: Centre for Finance, Innovation and Technology (CFIT) & Qwist (former ndgit) - https://cfit.org.uk/wp-content/uploads/2024/02/CFIT-Open-Finance-Blueprint.pdf
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Founder & CEO, Group 8 Security Solutions Inc. DBA Machine Learning Intelligence
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Keynote Speaker on Tokenisation of Real World Assets. Advisor to Central Banks on Gold Backed-CBDCs and Gold as a Service (GaaS). Founder of Bank of Bullion & Clinq.Gold
7 个月Fascinating insights into Open Finance and its potential to reshape the economy!