At INNOPAY we experience that Financial Services executives are embracing Open Finance. Open Finance is an emerging paradigm in the financial services industry in which value creation results from sharing, providing, and leveraging access to data, products, and services through application programming interfaces (APIs). It is designed to develop more compelling, 'embedded' value propositions and experiences for customers and partners as they interact and transact in digital ecosystems.
Learning from European developments (most notably the implementation of PSD2, i.e., the revised Payment Services Directive), various Open Finance frameworks have emerged in the rest of the world. Despite nuances in scope, timing and driving forces, they all seem to have an aligned objective: opening up financial institutions to leverage data and functionalities through APIs in order to drive value creation in digital ecosystems.
It is now time to act
Besides the compliance challenges of Open Finance, financial services providers and other actors need to cope with an ever-changing competitive landscape. Emerging players are disrupting traditional value propositions and business models while simultaneously also presenting new opportunities for collaboration.
Open Finance is the key building block for financial services providers to compete and collaborate in digital ecosystems. It is therefore now time to act. INNOPAY has a solid track record in supporting financial institutions (e.g., banks, insurers, wealth managers, pension funds etc.) and service providers operating in digital ecosystems with strategy development, new product & proposition design, and implementation.