Putting the customer in control of their finances

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Open Banking is giving users an easy and secure way to understand their finances

As I opened my mobile banking app, a pop-up flashed onto the screen:

“Watch out, you’re eating out too often and not exercising enough! Here are some interesting fitness options that could work for you!”

I was shocked – it was only my mother who usually gave me this kind of advice. Now my mobile was doing it!

I paused to ponder about how my guilty pleasure had gone public. I vaguely recall clicking “I Agree” on a pop-up while making an urgent payment on my mobile banking app a few months ago. I connected the dots.

A clearer view of your finances

My bank has always been a leader in customer service and innovation. With the advent of the Open Banking and PSD2, they seized the initiative. Instead of being passive suppliers of data to Account Information Service Providers (AISP) and Payment Initiation Service Providers (PISP), the bank had morphed itself into becoming an integral part of the customer’s life experiences.

This transformation represents nothing less than a paradigm shift for the bank. As with any change, good governance and risk management practices are critical for the success – a topic I’ll return to in a future next blog.

Quick, easy and direct payments

As an Accounts Servicing Payments Service Provider (ASPSP), the bank now had information on my three cards and two bank accounts. My entire spends were analyzed – including a missed renewal on my gym membership – and friendly advice touted. I now had visibility on all my expenses categorized, with beautiful visualizations to help me make better financial decisions. I could see my investments across various asset classes, including valuation trendlines across the years.

My payments had also become an easy exercise. I could now issue payment instructions across my bank accounts and cards, giving me great peace of mind in ensuring that payments were never missed. This meant no more hurried transfers to ensure direct debit mandates were honored.

I’m delighted with these conveniences – and despite the unexpected advice about my dining out habits, I didn’t want to switch loyalties from a bank with which my family has built a relationship dating back to two generations.

The future of Open Banking

In Australia, the move towards Open Banking is being driven by the Australian Competition and Consumer Commission. Having started with Financial Services, the Energy and Telecommunications sectors are proposed to follow next. It’s just a matter of time before other countries also follow suit.

To learn more about how governance and risk management can be interleaved into this seismic shift occurring in the services industry, contact Geetha Jayaraman

Geetha Jayaraman helps organizations leverage their use of technology by managing risks to achieve organizational objectives. She uses her experience to facilitate digital transformation of organizations through the adoption of the right technology solutions. As an expert in cyber security, she has guided many organizations in balancing risk with the adoption of technologies. Prior to her current role in Information Risk Assurance at Capgemini, she worked with several large technology service providers to bridge business objectives with ICT solutions.

 

 

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