The banking industry has traditionally been one of control and regulation. Technology has changed that. Nevertheless, digital and technological advancements in the industry have been more evolutionary within the financial ecosystem than revolutionary.
However, the past eighteen months have created a mutant marketplace, where competition and innovations, armed with digitization and stealth, heavily impacting traditional banking practices. Some institutions use their initiative to progress forward beyond the concrete of bricks-and-mortar, while others are mired in their established mindset and traditions.
Emerging from this tangle of advancement and development has been ‘open banking.’ Over the past few years, there has been much media hype and internet discussion about open banking. Banks, fintechs, and the overall financial industry can benefit from open banking’s fundamental, irrevocable, and innovative approach. Open banking has created a much-publicized urgency for market players to position themselves at the forefront of this unchartered territory within the banking world.
Open banking has posited itself as enabling a new and innovative type of digital financial offering. The installation of this innovation gives banks the potential to realize an immediate convenience to their client base. The only relative comparison that can be made of open banking per se can be to parallel the personal computer’s impact on modern life.
Perhaps this is a big sell of open banking. However, open banking has emerged as an initiative that can. It will disrupt the staid tradition of convention while giving its end-to-end users a better, more convenient, more streamlined banking service.
Open banking allows major banking institutions to create digital platforms and financial ecosystems to take advantage of current open banking regulations. As a result, access to [personal and financial] data has become more comprehensive and streamlined, as the digital banking experience has become centralized in a single app. This has given the consumer more choice within the open banking, digital banking arena. However, this consumer opportunity is still more likely to be between different platforms, other than across an industry-wide digital marketplace.
Youtap and its Banking as a Service platform has been at the forefront of making things easy for the banking industry and the consumer. They continue to advance and develop their banking as a service and digital banking software, making open banking adaptable and available, coherent in a babble of FinTech acronyms and financial jargon.
Open banking continues to be an initiative developed to have dynamism within a staid industry. It promotes competition, stimulates innovation while giving end-users advanced, convenient assistance. Open banking is worth investigating on a deeper level to understand its unheralded impact. If need be, search through Google Scholar with parameters. The peer-reviewed academic articles will shed more light on the subject, better than a word-restricted blog could ever hope to achieve.Like to learn more?