Banks have been a decisive entity of the fate of the financial situations of people for centuries, having proprietary rights to users’ most confidential data and thus modern time banks have an easy approach on even predicting the lifestyles, behaviours, of the clients by combining the demographic data with the clients spending habits. This makes banks one of the most crucial institutions that have direct access to our personal data which plays the most major role in Finance in the world.
The traditional banks isolated themselves, in order to protect the data, confided with them, because if these confidential data would have slipped to unauthorised entities the consequences would be devastating to the reputation and trust held on the bank.
With the pandemic situation, people got accustomed to more convenient banking solutions, in contrast to the traditional methods, in which in person attendance to a bank was a must. Now digitisation of banks has made it convenient for the clients to access any financial transaction at their fingertip.
Open banking concept is a next level concept born of this digitisation, which has already made a huge difference in Fintech and Financial institutes as a whole. Let’s explore the possibilities of Open banking with an open mind further in this article, and how our own WSO2 is pioneering an amazing solution.
Open Banking in a nutshell
According to the Bank of Lithuania, which is a Central bank in Europe verified and licensed, open banking can be defined as
“ A system based on application programming interface (API) and intended for sharing financial information necessary for the development of financial products and services. Contrary to the conventional centralised management of financial data, it relies on a technological network of different financial institutions, enabling them to exchange information more efficiently.”
Simply it allows non banking organisations to offer banking functionality, in a secure environment, with customer consent.
The API’s used for open banking are safe, and will not reveal any of the confidentiality, and also the service providing organisations are government regulated organisations, with secure financial policies, thus the safety of open banking is assured to the clients.
Image copyrights- https://verifiedpayments.com/blog/open-banking-history-definition-examples/
The purpose of open banking
The main purpose of open banking is to overcome the monopoly that the traditional banking systems are maintaining, and the over comfort it has created within the banks, and to enable competition within Financial organisations leading to Fin-Tech innovation.
Open banking is here to somewhat eradicate the sole ownerships that banks had over financial clients confidential data, by sharing them with trusted Fin-Tech companies that are trusted. This is a competitive environment highly beneficial for end users.
Benefits of Open banking
Open banking has opened avenues and opportunities for Tech organisations, especially Fin- Tech to open up in creating many seamless, fast, user-friendly streamlined solutions, which are life saving for the general banking users. These services are of higher speed, and of lower costs hence are very much convenient. These open banking solutions are in competition with traditional banking methods and guess who is winning?
It’s a win win situation, in every way, as
-It provides banks innovative ways to keep up with the competition, by employing the functionalities provided by the Fin-Tech or non-financial institutions.
-This motivates the banks to adapt to newer ways, and to understand the changes to be made for better customer satisfaction.
-Open banking API’s help banks to enhance their methods to cater to the existing and prospective customers who have constantly changing demands.
Benefits to banking users
-To build a better understanding of Finances
-Creates solutions where all the customers finances could be managed in one place, From budgeting to finding the best deals, and coordinating purchasing the right products and services. The customer can choose a regulated app or website that can securely access their account data.
-For convenient, quick and easy direct payments
-Purchase products or services through e-commerce platforms, directly through the bank.
-Ability for shopping with less limitations
-Extends the choices of customers to deal with multiple service providers. Also permits the customer to take charge of their finances and make informed decisions in order to manage their account.
Open banking has overall broken down the barrier between the customers and the bank, with a more customer centric financial approach, enhancing customer confidence, through the development of novel products/services and new revenue models.
WSO2 Open Banking solution
WSO2’s open banking solution “Accelerate Compliance and Go Beyond to Wow Consumers”, is indefinitely wowing and impressing the consumers and stakeholders largely.
They have incorporated their expertise of 15 years gathering global deployment, and created the ideal open banking solution. The exclusive WSO2’s open banking methodology is an exquisite framework to make business and compliance goals of banking organisations a success. WSO2 also delivers strategic consultancy regarding the initiation and execution of this open banking concept, with its expertise in the digital field and comprehensive technology.
Why WSO2’s open banking solution
The ideal solution that would provide you with the right tools
Endless commercial opportunities built on an industry -leading API platform enabling effectful collaboration. WSO2 Identity Server was named a Strong Performer in The Forrester Wave™: Customer Identity and Access Management, Q4 2020. WSO2 was named a Leader in The Forrester Wave™: API Management Solutions, Q3 2020 . WSO2 Identity Server was named as an Overall Leader, Product Leader, and Innovation Leader in the KuppingerCole Analysts’ Leadership Compass: CIAM Platforms 2020, November 2020
Gives you a value unmatched , with a competitive pricing structure, with all key features and performance worth every bit of your investment
Accordance with standards and conformance
The API templates and security profiles are in accordance with global standards, including the UK’s Open Banking Standard, the Berlin Group NextGenPSD2 XS2A Framework Implementation, Australia’s Consumer Data Standards, Brazil’s Open Finance standards, and Financial Grade API (FAPI) security profiles.
Enhanced user experience assured with microservices, containers, graphQL API’s and many more
Out- of -the- Box core functionality
Offers so many functionalities such as Consent management built into the system, Consumer authentication, Managing and onboarding of third parties, Acts as a developer portal, Serves as an API marketplace, works on core banking systems integration, data integration , analyzing and mitigating risks and many more.
The ultimate one stop shop for successful open banking
The open bank solution of WSO2 guides the business through the open banking journey with comprehensive and sophisticated technology, in order to accomplish business goals through digital maturity and with WSO2’s unique ability to create value through digital transformation.
WSO2 already provides their valuable services to many major financial institutions adding value to its customers and service.
All in all open banking is such a value added concept that is making a major breakthrough in the Financial industry and FinTech, and WSO2 is evidently doing a great job in making the open banking system work to its full potential, with all it’s technical expertise and value engorged throughout years of harnessing the very essence of technology and Digital maturity. The solution is undoubtedly one of the best you could lay your hands on.