What is Open Finance?
Open Finance is the next step in the open banking journey, opening up financial data such as mortgages, savings, pensions, insurance and consumer credit to trusted third parties, provided the customer gives consent. A wider range of products and services for consumers will inevitably result. Further, open finance will give customers greater control over their data, while further driving innovation within the financial sector.
Possible use cases include enhanced versions of those already present in open banking. For example:
- Expanded account aggregation that includes savings and investment accounts
- More accurate credit risk assessments that consider e.g. savings data
- Holistic advisory services, which includes e.g. insurance accounts
Brand new use cases would also open up, such as:
- Automated renewal or switching of insurance policies
- Product recommendations for savings, insurance, etc.
Like open banking before it, open finance has the potential to transform the way financial services work for individuals and businesses.
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