Open Banking Framework: Driving Better Customer Outcomes

Since years, the industry has been following the concept of closed banking where all the accounts and data of customers was stored with banks only. All the control was kept with banks with limited choices given to customers. However, the scenario seems to be changing with the introduction of PSD2 and open banking.

PSD2 and open banking bring an opportunity for customers to gain control over their financials and get a clearer picture of their banking. They might be able to use the power of their own data to get access to better financial services. But how would that happen?

Open banking requires banks to give access to accounts and data to qualified payment service providers (PSPs) through secured APIs to offer better financial services. It will enable third-party service providers (PISPs and AISPs) to build financial services on top of banks’ data. The whole concept of open banking is meant to offer better banking to customers and improve the user experience by offering numerous benefits.

Read the complete article here to know what role will PSD2 play in enhancing the user experience and what challenges might come in the way.

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