API/Open Banking is a major source of innovation for the banking industry. The platform with a network of financial institutions and services available through APIs along with the driving force, i.e., PSD2, has helped in boosting competition and in unveiling a variety of products to the ever-changing financial industry.

ERI Bancaire and IBS Intelligence have collaborated on a whitepaper which focuses on the financial institutions such as banks, implementing open banking, and attempting to manage the captured data, build transparency and yet preserve customer rights.

The whitepaper Building Transparency with API/Open Banking focuses on the increase in additional customer data and a reduction in the time to market brought about by the API/Open Banking revolution. It discusses the phases of implementation amongst the marketplace and conventional banking followed by a need to gather digital data consent from the customers.

The need for data transparency has been highlighted in the whitepaper, given that customer security remains a priority for GDPR as well as PSD2 regulations. It presents justifications for instituting and adopting data transparency for the end users.

Amidst the dynamic intricacies of the API/Open Banking platform, financial institutions incorporating the platform undertake significant investments with delayed ROI, rising system expenses, the desideratum of a strong analytics platform and a rising need for customer awareness.

With the rapid adoption of API/Open Banking platform by the financial institutions, an increased need for data security and customer awareness will rise, forcing the adopters to explore niche areas of this very platform, ultimately enabling a dynamic data transparency ecosystem.

For more insights – Please read the whitepaper on “Building Transparency with API / Open Banking.”

by Megha Bhattacharya
Market Analyst at IBS Intelligence
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