Driving A New Era of Financial Innovation

Is Open Banking a threat to financial institutions? There are some banks who still see the financial data as theirs, instead of belonging to the consumer. But, many have embraced, or are leading the way towards, Open Banking and Open Finance by making investments or building open finance APIs. The vast majority see it as an indispensable asset in how they connect and support their consumers. 

This is just one key takeaway from a recent episode of the State of Identity podcast featuring David Whitcomb and Crystal Anderson, MX’s vice presidents of product. 

Open Finance creates a future where financial institutions shift their approach from “just a safe place to hold money”, to developing more meaningful relationships with consumers. This means improving user experiences, going beyond transactional activities, and leveraging data to proactively engage with customers to support their financial wellness.

For example, the need for a complete picture of their finances remains. Ninety percent of people said it would be valuable to see their finances in one place. But, that experience is too labor intensive for the consumer in dealing with broken connections, etc. So the reality is only 40% said they could actually see their full financial picture in one place, according to an MX survey.

“Where [the industry] is going is this place of financial advocacy, where the connection of my accounts to my life, whether it’s digital or physical, is so deeply connected. I know the context of my payment, why I’m making it — not just that I’m paying with the card or with a checking account.” - David Whitcomb, Vice President of Product at MX

In the end, Open Finance benefits both the organization and consumer by creating a more stable and secure way to access, share, and act on financial data.