Open banking has several benefits; they are especially easy to identify for the customer who can get:
- Increased choice and comparability: By opening up their data sources, banks and other financial institutions allow customers to quickly compare services and offers from different providers.
- Improved user experience: Open banking enables third-party providers to create financial services and solutions that are more user-friendly and accessible. Particularly important for people who do not have access to traditional banks or who find it challenging to navigate the financial world.
- Increased competition and innovation: By opening up their data sources, banks and other institutions provide opportunities for new players to enter the market and offer new services and solutions. Increased competition and innovation in the financial industry will, in turn, give customers better and cheaper services.
But there is also an obvious upside for the financial institutions:
Increased business opportunities. Open banking also allows banks and other institutions to offer new services and solutions to their customers, increasing their business opportunities and generating new revenue.