The Data Democratisation has begun
PSD2 brought increased competition and innovation into the financial services sector. Therefore, banks need to offer dedicated APIs for securely sharing customers’ data with TPPs for account aggregation and payment initiation. Hence, democratising the banking access to data.
Consequently, banks are capable of offering value-added services that they do not have to build or run themselves to customers. They can select and offer third-party products and applications at the customer’s request, securing the customer relationship. A well-considered Open Banking strategy puts customers and their expectations first and helps increasing customer loyalty throughout the financial lifecycle.
Moreover, the more participants there are in this “open” system, the greater competition is. Consequently, the variety and quality of services will increase, prices decrease, and end-users gain more control of the overall process.