Open Banking is a new and revolutionary way of using financial data by third party providers for the benefit of bank account holders. Having emerged in Europe in the early 2000s, the Open Banking concept has now swept across a large part of the world from Mexico to Australia. Today data has a value, and the promise of Open Banking is that by opening up their financial data and services to third party providers, both banks and their customers would equally benefit from this openness. Banks would make the most of the enormous treasure trove of data they hold and their end-customers would benefit from a large set of innovative and added-value services making their lives easier.
Naturally, Open Banking comes with its own set of challenges and risks. Banking regulators, banks and third party providers need to work together to overcome them and to find models that preserve security, satisfy consumers needs and unleash innovation. The prize is well worth the effort – a better, personlised, more secure and more convenient customer experience for all!
The following article will explore the nature of Open Banking, why it is important and how it will change the essence of the next generation of Islamic financial services. Click on the link to view the full article.
This article that I wrote together with Mr. Ismail Chaib, COO at TESOBE, The Open Banking Project based in Berlin Germany was published in the Global Islamic Finance Report 2019.