Open banking initiatives are underway around the world – from more progressive markets like the United Kingdom, Europe and Australia, to the upcoming powerhouses like the United States and India. While, some are further along with regulation and standards, all open banking initiatives share the same objective of opening up data to accredited third parties to help drive innovation, competition and better consumer outcomes.
For FinTech’s, open banking will lead to further innovation and growth as it continues to change the way consumers interact with their finances and increase the ease and efficiency of data sharing between financial institutions. It’s giving consumers more control over their financial data and making it easier to share that data with companies they trust.
This efficient transfer of data is allowing FinTech’s to make more informed decisions about their products and services, which are tailored to consumer needs. For example, developing spending apps that can understand consumer habits and allow businesses to target them with relevant offers at the right time.
Aside from better understanding the consumer, open banking is also allowing FinTech’s to level the playing field by creating more competition with major financial institutions through equal access to data. This will enable FinTech’s to expand their services among a wider audience with equal opportunity.
Whilst open banking is well established in the UK, Europe and Australia, and is gaining traction in other markets like the US, for political and regulatory reasons no two markets are the same. That’s why working with accredited partners could be a great opportunity for Aussie FinTech’s, as these organisations can support businesses with maintaining open banking APIs and managing regulation and standards to access new markets.
If you’re an Aussie FinTech looking to grow, there are great opportunities to leverage partners who can help you to expand outside of the Australian market. Envestnet | Yodlee was one of the first providers in the Australian market with access to both CDR and non-CDR data, which enables businesses that use its products and services to get a head start and navigate the Australian landscape.
Our broad range of solutions can help you safely leverage the multi-country open banking opportunities.
The move to open banking is unavoidable and will have a significant role to play in the growth of Australian FinTech’s, both in our market and overseas.