Data sharing and open banking

What will open banking bring to the Australian payment industry? How will increased open access change how players navigate and compete? Is the European model a good example / road map for the rest of the world? Check out this McKinsey Report on data sharing and open banking.

 

“The potential benefits of open banking include improved customer experience, new revenue streams, and a sustainable service model for underserved markets.

Buzzwords like “big data” typically bring to mind quantitative exercises like the application of algorithms and analytics. While these are certainly critical steps to gaining insight, a more fundamental building block of the data market is access. Easier access to data has become a hot topic in all industries, none more so than financial services. For instance, the G20’s Anti-Corruption Working Group has identified open data as a priority to advance public sector transparency and integrity. From a commercial standpoint, data can serve as a catalyst for new products and business models. The European Union has been proactive on this front, setting the rules of engagement through the updated version of the Payment Services Directive (PSD2).”

Read more from this report here.