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- Insight Update

Open banking & banks: news and use cases

Open Banking is no longer just a buzz word but a reality. Open Innovation, that is the field of innovation that promotes an openness to a more agile sharing of data (implicitly to give even more impetus to the creativity of the market), has finally reached the industry that first made a model: the financial industry.

Towards the “invisible bank”, that is? 

Open Banking can have more meanings, depending on who is talking about it. However, there is a fact: banking services, in remaining the pillars of modern economic development, must be able to grasp the new dynamics of interaction and information that are typical of the digital world in which we live.

If, on the one hand, technological innovation has created the so-called app economy, i.e. the industry of services accessible and usable via mobile, on the other hand, PSD2, as a regulatory innovation, has produced reference standards from which it is possible to draw inspiration, always keeping data security in the foreground.

In this context, the bank must, as far as possible, embrace the philosophy of invisible banking.  In a world where savers go less and less to branches and interact more and more through home banking (or, indeed, mobile banking apps), the arrival on the market of specialized providers, from savings management to investments, pushes banks to be present in a different way. To be in the right place at the right time.

Banks and PSD2: “collaboration” is the keyword  

These new scenarios, therefore, force institutional players to embrace the spirit of collaboration, a real watchword, in order to stay “ahead of the curve”, i.e. to be able to avoid being invested by innovations that, if not taken into account, can overwhelm the solidity of a broader strategy.

New services and products 

Fabrick, a company founded with the aim of creating new models and facilitating the implementation of new paradigms in a highly regulated market, has already identified and implemented several use cases, including six of particular interest.

1. HOME BANKING MULTI-BANK, i.e. the possibility to leverage the PSD2 to offer in a single application the visualization of all your account statements rooted on different banks.

2. CREDIT SCORING (O RISK SCORING), i.e. the ability to process data from various institutions in order to provide more comprehensive, transparent, and reliable risk or creditworthiness indicators.

3. DIRECT PAYMENT FOR MERCHANTS ON E-COMMERCE SITES, i.e. an enrichment for the world of online payments due to the introduction of credit transfers, replicating a user experience already known from the credit card payment market.

4. DATA STRATEGY SERVICES, i.e. the ability to process data from different sources to reveal trends and patterns that are difficult to discern “with the naked eye”.

5. INSTRUMENTS FOR ADVANCED CASH-POOLING BUSINESSES, that is the facilitation in the management of the liquidity, just thanks to the ability to work directly on multiple institutes, favoring the managerial dynamism necessary to enterprises of variable dimensions.

6. RECONCILIATION SERVICES, i.e. a value-added data management service that, by leveraging tools such as the virtual iban, are able to automate in a more complete and precise way the reconciliation path that still today sees the need for constant operational intervention.

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