Shadi SaifanVice President of Engineering NCR Voicestold PYMNTS in an interview that bridging the gap between the promise of open banking and the realization of that promise is easier said than done, especially in the United States.
He pointed out that in Europe, not only open banking principles, but also regulators and governments have played a key role in promoting open banking. A key element is data sharing and control of personal data, placing personal data firmly in the hands of consumers.
In contrast, Saifan said, “The approach that the United States took was an industry-driven approach.”
In that case, education and new case studies from banks can help make a big difference in open banking adoption and help individuals feel more secure about how their data will be used securely. .
He said banks should embrace disruption (often from fintech) as part of their ongoing digital transformation and look to create open, large-scale ecosystems. said.
“No single financial service or single financial institution may be able to provide everything consumers really want to enjoy and make a difference for consumers,” Saifan said, adding that larger financial The ecosystem of services includes and must include fintech, he added. Companies that generally innovate faster than traditional banks. On the other side of the equation, FinTech acts as a “part” of what traditional banks offer, creating value-added services for consumers at scale.
Collaboration benefits all players
“Cooperation and cooperation drive revenue,” Saifan said.
On the consumer side, “we need to see the consumer as an identity, not a username and password,” to ensure peace of mind and security and to ensure that data is used in a way that strengthens trust. he said. The foundation is already in place as customers already trust banks and keep their funds and savings with traditional players.
Although use cases take time to develop, low-hanging fruits include account aggregation that allows individuals to view details of their various holdings and activities (even across multiple institutions) in one place. there is. But we are moving towards a future where data stored with a creditor can be used to apply for another loan, made faster and streamlined through secure data sharing.
“If I could give another creditor permission to look at my data, I could quickly get answers about my car loan, mortgage, credit card, or any loan I have or want. “It means you can get it,” he said.
Similarly, the principles behind account aggregation also facilitate other aspects of everyday financial life, such as managing subscriptions.
As for the future of open banking in the U.S., “We’re doing it in an organic way,” Saifan said, adding that there will be further tailwinds as standards converge around open banking APIs.
“There is little doubt that open banking is going to grow and is here to stay,” he told PYMNTS.
