Open Finance Service

How it works

Example of Data used to provide this service

Benefit(s)

Account Aggregation

Consolidates all of the customer’s financial information into a single place.

· Transactions

· Credit

· Investments

· Mortgages

· Savings

· Retirement accounts

This is essential for Open Finance, offering customers an online, unified view of their financial data from one or more accounts.

Financial Management

The process starts with account aggregation and the data is then presented to the customer in a simplified manner such as graphs or illustrations.

This allows for automated financial decision-making based on user preferences and data. It also allows for a broader yet simpler manner in which financial product offerings are presented to customers. This is especially helpful when it comes to advice and intermediary services.

Payment Initiation

TTPs can initiate payments on behalf of the account holder with their explicit consent. This lets users make payments directly from their accounts without relying only on their bank’s systems. These TPPs can access and initiate payments from the user’s bank or other financial accounts.

· Seller bank details

· Payment instructions

· Interbank transfers

· Payment confirmation

It streamlines the payment process for users and allows users to set up recurring payments, make low-cost payments to merchants, and avoid the hassle of entering payment information for each online purchase.

Alternative Lending

TPPs securely connect to financial institutions to gather financial data. This data is then enhanced by the TPP, such as creating personalized credit scores for customers. These scores can be used by lenders, brokers, and banks to make better lending decisions based on alternative factors and customer data.

· Irregular income

· Rent payment reliability

This boosts emerging lending markets, such as peer-to-peer lending, crowdfunding, merchant cash advances, and digital wallet-based lending. It also provides for improved access to funding, simplified application and approval processes, tailored loan options, and increased transparency and competition.

Open Insurance

Sharing and using customers’ insurance data among insurers, intermediaries, or TPPs to create new applications and services.

· Insurance policy data

· Insured object coverage

· Claims history

· Internet of Things data

Assists with Tailored Insurance Products, Improved Risk Management, Enhanced Customer Experience, etc.