It’s no secret that in today’s current climate there is increased scrutiny on consumer data privacy. What has further fueled the flame is the large scale companies that have been under a microscope in recent events; Equifax’s data breach, Facebook and Cambridge Analytica, and on a smaller scale, series C startup, StockX. These events have drawn so much attention that even our ancient congressmen and women up over in DC have attempted to grasp the concept (see Zuckerberg’s awkward testimonies and a certain congressmen’s confusion over Google searches).
These series of fortunate or unfortunate events (depending on how you view regulatory governance) have brought more awareness to consumers on where and how their data is being used. In my view, consumers care more about protecting themselves.
So what does this mean for “Open Banking”?
“Open Banking” is a topic in fintech that enables customers with multiple bank services/products at varying banks to view and access all their information in one place. To put it another way, all your financial information will be aggregated into one place where you can do all your financial management.
For this to be successful there is work on the backend that has to take place between a customer’s banks and the many third party fintech companies that are blossoming. Although the US is still a ways out from enabling “Open Banking”, consumers care more than they ever have about privacy and as a result will eventually want to understand the way their financial data is being used and protected. Fintech’s that focus not only on providing financial awareness and access but also on transparency and the ability to explain to the common person who has their financial data will be best positioned to navigate and thrive the inevitable arrival of “Open Banking” in the US.
