With the concept of “Open Banking”, banks allow access and control of customer personal and financial data to third pay service providers such as tech startup vendors or fintech companies to drive innovation, create customer profiles on aggregated data, trigger new transactions and account changes on the customer’s behalf. Open Banking is the practice of enabling secure, interoperable, and agile access to banking data in a collaborative model through APIs between 2 or more unaffiliated parties to deliver improved customer experience, new revenue streams, faster time to market, and sustainable service models for traditionally underserved marketplaces.
Open Banking is driven by new regulations and changes in technology, culture, and operating models. Banking service firms are facing many challenges, especially during the pandemic. Most have to do with the rapid changes in technology transformation, evolving customer preferences, new regulations, data privacy, and growing competitors.
In this paper, we will see challenges and trends in the Open Banking strategy. We will dive deep into how HCLTech and MuleSoft can contribute to achieving an Open Banking platform for an enterprise.