The rise of open banking and its benefits has been made abundantly clear. Financial literacy is at it’s all time low, while the future of data and financial banking has in fact been sitting right under our noses. As regulators in the region work towards developing and adhering to a set of standards such as consumer data protection, customer skepticism towards data privacy specifically when it comes to personal financial information is a valid concern.
It is therefore a duty for all members of the financial ecosystem to acknowledge these concerns and remind consumers of not only the security and control of open banking, but the value and personalized service that come with it.
It could be assumed that for many consumers, there is a fine line between sharing personal data and the invasion of privacy. However, understanding open banking as a secure and controlled pipeline of financial information rather than a ‘sharing’ of information helps to reap its benefits, while providing every reason to focus on data security and protection more than ever before.
Organizations adopting open banking practices must comply to extensive measures to ensure they have the right security practices in place. On top of that, customers must be provided with full transparency and control over how, when and with whom their personal information will be used and shared. All of this information would need to be made simple to understand and easy to manage, which can be a major challenge for businesses. The rise of FinTechs has allowed for trust, efficiency and management systems to further support this movement. At TG for example, this is done via end-to-end encryption in transit as well as in rest, using modern ciphers. All requests are cryptographically signed and chained using public key private key framework.
As a consumer, are you open to open banking? With the ever-increasing ways in which data and technology are currently evolving, it may be tricky not to be. Open banking as a platform is a step ahead of traditional security. It provides consumers with personalized services and the benefit of choice, whilst also ensuring the extra level of protection and control of their information. A win-win? I like to think so.