Beyond Open Banking – Exploring the Move to Open Finance
The financial industry has made significant progress in financial data access through open banking and progress will expand beyond payments with regulations like Payment Services Directive 2 (PSD2) to what is explored in the PSR and PSD3. Open banking has marked the beginning of this new era, and now the shift toward open finance is the essential next phase in this transition, with incoming regulations like Financial Data Access (FiDA) covering new areas including mortgages, pensions, investments, and savings.
While these initiatives hold promise, a successful open finance framework will require many financial institutions – who still rely on outdated systems and processes that may not natively support the flexible data access requirements of FiDA – to review their data architectures. If institutions can’t adhere to strict geographic data regulations (with certain jurisdictions enforcing that data remains within specific regions), guarantee real-time data availability, or scale in real-time to handle increased API traffic, further data modernisation efforts will be required.
How can financial institutions navigate this complex web of open architecture, flexible infrastructure, data requirements and regulation? Modern ecosystems require modern solutions, so organisations need to re-think their approach to data, not just to be able to facilitate open finance, but also to stay relevant in an increasingly competitive landscape.
Sign up for this Finextra webinar, hosted in association with MongoDB and Temenos, to join our panel of industry experts who will discuss how the move to open finance can be managed effectively with the right data architecture in place.
