In such a short space of time, the effects and emergence of Open Banking have already yielded impressive results. Open Banking provided a review on its growth and influence in 2019.
Open Banking in the UK for the first time surpassed one million users, and between June and December, the number of regulated providers grew from 104 to 204. Banks from NatWest to American Express and Metro Bank became a part of the Open Banking ecosystem, and by December of 2019, HSBC had signed a global partnership agreement to harness the power of Open Banking with the London-based FinTech start-up company called Bud.
Similar to the growth in automation, integrating technologies into companies’ infrastructure is key for their survival. Third-party aggregation-based companies and apps were some of the first Open Banking APIs that were launched, and they continue to evolve and provide more specific customer needs. But more than that, Open Banking is having a knock-on effect on the rest of the banking sector. MasterCard
delivered a report on providing ‘the promises of Open Banking’, concluding that Open Banking has the potential to bring the industry together, innovate and thrive through making more regulatory APIs available. As Open Banking was a response to the limitations of competition, putting the pressure on banks to develop and compete with their own PFM (Personal Finance Management) tools could lead to innovations in areas such as micro-saving, credit scoring as well as wealth management. On top of that, artificial intelligence has the potential to offer you relevant products, services as well as predict events in your accounts. In just two years since Open Banking has come to the market, mobile banking and automated technologies have innovated the way we deal with our finances, and as FinTech companies grow bigger and bigger in order to compete with traditional banks, you can bet the landscape will become even more innovative.