We define “open banking” as a model in which banking data is shared between two or more unaffiliated parties to deliver enhanced capabilities to the marketplace.
Progress toward data sharing has differed by region depending on market structures, regulatory environments, and consumer attitudes toward privacy and security. Varied interpretations of the word open from both industry firms and consumers are also shaping approaches to this new model. Use cases range from new interfaces for financial data, alternative underwriting and lending, facilitating new payments streams, and the opening of ecosystems.
With PSD2’s initial provisions having taken effect in January 2018, and the implementation of the General Data Protection Regulation (GDPR) on May 25, the European Union has taken a regulatory approach to establishing a foundation for open banking. The scheduled September 2019 launch of Regulatory Technical Standards (RTS) will open up access to banks’ account and payments data, paving the path for a broader set of firms to leverage and monetize this information.
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Source :Mckinsey