We outline the market outlook for open banking in the financial services industry — from investment trends and leading companies to recommendations for the players in the space.
What is open banking?
Open banking companies use application programming interfaces (APIs) to give banks access to their customer data and allow them to share that data with fintech firms (with permission from the customer). This allows banks and third-party fintech firms to easily map and analyze vast customer data, which they use to improve digital experiences and products.
Features & capabilities
Open banking provides banking leaders with several capabilities, including the following:
- Digital identification verification
- An open banking aggregation gateway
- Financial data enrichment and analytics tools
- Open banking API platforms
- Account-to-account payment solutions
- Turnkey compliance solutions
Benefits
Open banking companies offer these substantial benefits to banking leaders:
- Improved customer experiences
- Reduced risks
- Reduced operating costs
- Improved credit acceptance
- Increased revenue and growth opportunities
- Improved success rates
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