open finance white paper mockup
DSP2
Open Banking
Open Finance
From Open Banking to Open Finance: What Does the Future Hold for Big Banks and Insurance Companies?
date Jan 09, 2023

Open Banking has dramatically changed the world of financial services to bring new innovations and streamlined customer experiences to life. And while Open Banking is now practically omnipresent across the entire financial services industry, the Open Finance revolution has been rapidly evolving behind the scenes. Because the shift to Open Finance offers financial services providers access to a much broader array of financial data—beyond checking account data alone—it’s no surprise that banks and insurance companies are interested in accessing this data in order to offer their customers new solutions and more personalized services. 

 

Among the many innovations stemming from this access to a wealth of financial data, we’ve seen some of the biggest industry players harness the power of Open Finance to help businesses and individuals manage their finances better, accelerate payment journeys, create better credit scoring methods—and the list goes on. All while keeping the power to share this data squarely in the hands of businesses or consumers (as further reinforced by the Lemoine law). That’s why we firmly believe the time is now to make the shift from Open Banking to Open Finance in order to offer your customers experiences they’ll love.

 

Open Finance is the key to creating best-in-class experiences

There’s no longer a monopoly on customer (banking) data. The Open Banking movement—fueled in large part by PSD2 regulations—changed the game forever. Open Finance seeks to take this one step further to enable financial services providers to unlock even greater value in a fast-growing market expected to reach $7B by 2030*.

Additionally, long-awaited PSD3 regulations will likely set new ground rules for how banks, insurance companies, and other businesses can access and use data from savings accounts, investment portfolios, and beyond in a more uniform way to bring new innovations to life. Open Finance is, therefore, seen as a catalyst for value creation—both for businesses and their customers—and now an unavoidable “next step” reality as banks and insurance companies look towards the future. Especially at a time when new players, like neo-banks and neo-insurance companies, are emerging each day and attracting consumers’ attention, making the financial services market more competitive than ever before.

Two examples immediately stand out to us: Finfrog and RiverBank. Both use the power and flexibility of Open Finance to create rapid, efficient, and results-oriented customer experiences. Finfrog, for example, is able to provide consumers with micro-loans within 24 hours, while RiverBank does the same instantly for small- and medium-sized businesses. Both tech startups rely on a breadth of financial data to design solutions that meet real user needs, all with speed and simplicity.

 

The time is now to innovate

In our white paper, Open Banking with Superpowers: Creating Unique Embedded Finance and Payment Experiences, we deep dive into how forward-looking financial services companies, like Finfrog and RiverBank, have harnessed the shift from Open Banking to Open Finance to create new value and rapid innovation within the market.

By sharing these examples and best practices, we’re giving you (banks and insurance companies) the keys to build apps that surprise and delight your customers, in addition to: 

  • An overview of the Open Finance ecosystem and its evolution
  • Tips and advice for building best-in-class digital customer experiences 
  • A handful of B2C and B2B customer success stories 

 

* ‘The future of Open Banking & Open Finance – Mega trends 2022’ report, Open Banking Excellence

 

Download our white paper

Eager to learn more about Open Banking with superpowers? To discover the innovative use cases it fuels?
Let us guide you to creating embedded finance and payment experiences that users love.

 

Evelyne Lelievrematoux
Evelyne Lelievrematoux
Digital Content Manager