The Hidden War for Fintech Millennials; Open Banking vs Crypto
Open banking could wipe out crypto in 12 months
What is Open Banking? A protocol enabling developers to connect with bank APIs or other third parties to retrieve financial information requested by the user.
This is crypto’s worst nightmare.
For years, developers couldn’t make API calls to banks — this forced them to use solutions like PayPal or Blockchain. With open banking disrupting the banking industry, it also affects crypto:
Open banking is taking away crypto’s future innovators
Visa and MasterCard have been buying fintech startups for billions of dollars.
As most people have a bank account (in the western world), it makes open banking more convenient for the front-end user.
Startups know this and can now experiment with payment processing apps while compounding the tech with automation or AI.
So far we’ve seen:
Intelligent money management apps — all your bank accounts in 1 place, spending management, analytics, alerts.
Credit-lending apps — Proof of income and payment history, smarter repayments scheme.
