Mind the Gap — A Guide to Data Utilization

The current financial ecosystem allows for unprecedented access to financial data. Finding data clearly isn’t a challenge — it is gaining reliable access to and unlocking the value of that data. And, the pace of financial innovation is only accelerating, urging financial institutions and fintechs to pass data streams through secure layers that can cleanse, categorize, and add context to the data so that financial providers can deliver personalized solutions that solve real-world problems.

Untapped Potential

Think about it this way — from credit card transactions alone, the amount of data generated each day worldwide is greater than the miles it takes to travel to and from the sun five times. With this much data in circulation, it shouldn’t be surprising that proper data utilization extends far beyond just personal finance management tools for consumers. Companies fall short in emphasizing the less-valuable data points — the data that doesn’t have context, or the ability to use the data in conjunction with a complete financial picture.

Open Finance fills in those gaps by helping every company become a data company — meaning data itself becomes a primary product for nearly every business. This leads financial firms to enable:

• Better lending decisions
• Fraud prevention
• Personalized offers
• Enhanced digital experiences 
• Increased financial inclusion
• Consumer loyalty

The reality is consumers are sharing their data, but the lack of secure and reliable access is creating a poor experience that reflects poorly on financial providers and prevents an accurate picture of their consumers. As a result, the financial industry is missing out on opportunities to drive additional value with personalized, proactive insights and recommendations and ultimately create lasting brand loyalty.

If you’d like to learn more about how open finance removes the gaps in financial data, you can view MX’s whitepaper release here.