Open systems that continuously interact with their environment are changing how industries operate, sector by sector. Consider open software, where any developer can post projects onto online repositories like Github and have other developers use, add or update the project, which speeds overall code development and creates synergies.
The same is happening with open banking, the set of laws, technical specifications and implementations that improve the secure sharing of customer financial information, with full approval by the customer. In the UK, where the Open Banking standard started the trend, three million consumers and businesses were using open banking-enabled products at the start of 2021. While the adoption isn’t massive yet, the innovation and adoption rates are accelerating.
As Zac Cohen, COO at Trulioo points out:
The need for digital channels and strategies has skyrocketed. The primary purpose of open banking is to level the playing field for fintech and establish a common, secure methodology to access and share information. And that pressure to have the adoption advanced is extremely high from fintechs and consumers alike.
In general, APIs offer a quicker, easier and less costly path to deliver new services that meet consumer demands and expectations. Already, there are over 2,000 APIs in the financial category and many more to come as advancements in big data, AI, blockchain technology, machine learning and other areas take off.
Another key driver is the growth of regulatory compliance. Various new regulations worldwide are coming into effect and financial institutions require solutions to fulfill their legal obligations. Those institutions that adopt a “wait and see” approach will find it increasingly difficult to keep pace and maintain their market positions, which is why APIs offer a viable option for financial institutions that need to satisfy compliance requirements while securing a competitive edge.
To help consider these complex issues, Trulioo is hosting the following webinar:
Maximizing identity verification in a digital, post-pandemic world
June 3, 2021: 3 p.m. London / 7 a.m. PT / 10 a.m. ET
Regulations, API integrations and fintech business models are now converging to drive rapid innovation in open banking. Taking advantage of these new opportunities and adopting modern practices will ensure that traditional banks and payments companies aren’t left behind.
During this event, Zac Cohen, COO at Trulioo will join Nicolas Dinh, Global Head of Operations in Digital Banking at Credit Sesame, and Garient Evans, SVP of Identity Solutions at Trulioo to discuss:
- The role of identity verification in optimal onboarding experiences
- Considerations for a data-led economy in an open-banking future
- Strategies for balancing security, compliance and customer experience
New measures must streamline identity proofing and customer onboarding. Organizations that deliver seamless, thoughtful, personalized and dynamic experiences will strengthen customer relationships, while those who fail to adapt will see frustrated customers and increased abandonment.