What is the future of Open Banking? Our vision

In recent years, the banking world has undergone a remarkable transformation towards digital. From the use of applications to carry out transactions to the collection of data to offer personalized products to customers, a new, much more open and versatile ecosystem has been generated.

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What is Open Banking and where does this concept come from?

Open Banking is a practice through which customer information is shared with third parties  (while maintaining security and using APIs). With this information, users can receive a portfolio of offers and products much more personalized to their needs, also enjoying a greater number of available options.

This concept is promoted by PSD2, a European regulation in charge of regulating payment services. Approved in 2015, it was the regulatory framework that finally promoted the application of the term Open Banking in the international banking sector, which is already beginning to see results with the use of this practice.

The basis of the Open Banking concept  is found in the client, with the aim of  providing a better experience in terms of personalization and offer of products and services. In this sense, the main trend of Open Banking  is oriented towards the optimization of data collection, integrating all the services in the entity’s ERP to obtain as much information as possible.

Some companies such as  BBVA, Abanca or Santander already work with this methodology, seeing interesting results from its application. BBVA, for example, uses APIs to respond to customer needs, and has opted for the creation of collaboration channels with businesses from different sectors, in order to guarantee a wide, varied and quality offer to its users.

Customers and Open Banking: the perception of society

Despite the fact that this methodology is a reality already established in the current financial environment, entities must be quite cautious when proportionally increasing their strategies. Payment  gateways  have to be designed appropriately to prevent customers from mistrusting digital banking and preferring to continue using traditional methods.

In today’s society, we can distinguish two fairly generalized groups in this regard. On the one hand, many customers are ready to discover and accept Open Banking  as a new reality. On the other hand, there is another segment of the population that does not like changes, and prefers to maintain the customs and actions of a lifetime.

Despite popular belief, we can find young and old people in both groups. For this reason, financial institutions must  incorporate these changes in a gradual and controlled manner , providing a large amount of information to their users, so that they fully understand the implications and advantages of these changes.

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The future of Open Banking in Spain

In Spain, the future of Open Banking depends directly on the confidence of users  when using the new digital products. Banking entities have already adapted to new trends, so the range of products and services is large, but customers still do not trust the alternative models offered by this practice.

For this reason, the strategies designed by financial institutions in the coming years will be crucial in determining the transition of our society in this area. They must ensure that customers perceive the change as something positive , understanding the advantages that Open Banking entails in their day-to-day activities.

What will 2024 bring in terms of financial trends?

This trend has brought changes towards sustainability within the financial world. Through the massive collection of customer data, these can be categorized and analyzed to identify patterns and particular needs, offering them to companies from different sectors. With all this information, individual recommendations can be made to reduce the carbon footprint , informing users of the impact their actions have on the environment.

Other important trends within the broad world of  open banking  can be found related to two terms: healthtech  (digitalization of healthcare) and  insurtech  (digitalization of insurance) . These services have been a revolution in both sectors, thanks to the possibility of providing much more efficient, fast and personalized services through the digital plane. 

The use of this type of tool by customers is, without a doubt, a total success thanks to the benefits it provides. Among all of them, we can highlight the notable expansion of the portfolio of offers available at all times, which includes personalized products and services adapted to the particular situation of each individual.

Open Banking  is the new reality in the financial world, to which we must all adapt sooner or later. The faster, the more we can enjoy all the benefits offered by these practices on a daily basis.

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