30
Benefits of open data ecosystems for customers & institutions
Open data ecosystems are gaining traction, allowing FIs to share data with each other with no effort or modification via a digital environment. FIs and customers—individuals as well as micro, small, and medium-sized businesses—can communicate without friction thanks to open data ecosystems, which benefit both sides. Increased access to financial services benefits customers directly by promoting credit, enhancing user convenience and improving product variety.
Banking - Continued article
Open data ecosystems: Stepping into open finance
Access to Financial Services
Customers can buy and use financial services that they would not have been able to access otherwise thanks to data sharing. Individual and SME borrowers may be able to obtain loans that consolidate their debt across multiple institutions at lower interest rates if they have improved access to alternative data and customer data held by other credit providers.
Enhanced Customer Experience
Customers save time while interacting with financial services providers because of data sharing, mainly during onboarding process.
Improved Offerings
Customers can benefit from open financial data since it can expand and improve the number of product options accessible to them, while saving them money. This is especially true at the beginning of the customer service life cycle, when customers are selecting products for the first time or switching to new ones.
Efficiency Gains
Because most of customer’s data is still found in physical documents or unorganized digitised sources, open financial data could reduce costs by providing verified data. This can improve the operational efficiency by promoting faster and more transparent interactions with providers.
Improved Fraud Detection
Total fraud (including but not limited to financial services) is estimated to be worth more than $4.5 trillion each year by the Association of Certified Fraud Examiners, or nearly 5% of worldwide corporate revenue. Innovative strategies for detecting and reducing expenses associated with these and other types of fraud can benefit from real-time access to consolidated customer data.
Optimized Workforce Allocation
Organizations can benefit from open data to better manage their workforce. This is especially critical during the product design and marketing phases, as well as during service and monitoring.