With control over all their data, customers will access an “internet of finance” with unlimited possibilities for new value creation
The development of an open financial ecosystem—in which the consensual sharing of customer data among financial institutions (FIs) and businesses creates new business models—is one of the future defining trends in banking and finance. In Open Banking, Open Finance, Open Economy: The New Identity of Finance—a new Impact Report sponsored by Okta—research and advisory firm Aite-Novarica Group analyzes the evolution from open banking to open finance into a truly open economy.
“Consensual sharing of financial data improves the customer experience,” said Ron van Wezel, Strategic Advisor at Aite-Novarica Group. “Open banking and finance allow FIs to leverage a customer’s financial data (with their explicit consent) to revamp legacy processes and improve the customer experience.”
“Customer identity functions at the heart of a robust open ecosystem,” adds John Horn, Cybersecurity Practice Director at Aite-Novarica Group and co-author of the new report. “FIs are in various stages of modernizing their customer identity solutions. FIs should invest in customer identity as strategic business capability.
About Aite-Novarica Group:
Aite-Novarica Group is an advisory firm providing mission-critical insights on technology, regulations, strategy, and operations to hundreds of banks, insurers, payments providers, and investment firms—as well as the technology and service providers that support them. Comprising former senior technology, strategy, and operations executives as well as experienced researchers and consultants, our experts provide actionable advice to our client base, leveraging deep insights developed via our extensive network of clients and other industry contacts. Visit us on the web and connect with us on Twitter and LinkedIn.