Visualising An Open Finance Ecosystem
‘Open Finance’ is a term used to describe the accessibility of core financial services made available through APIs. This allows for the sharing of data across multiple financial institutions driven by consumer consent, as well as being able to do something with that data once shared, such as a payment.
Open Finance is typically referred to as the ‘next step’ following Open Banking, with the latter predicated solely on the sharing of Banking data. Open Finance is also more sophisticated than simply the sharing of consumer-consented data, as not only does it cover the whole financial services landscape – from crypto wallets to payments – but also allows for a suite of actions to be performed upon this data. All the while, a business can derive insight from a consumer’s financial position having received the consent.
The following white paper visualises what a truly Open Finance ecosystem looks like, with references drawn to Australia where necessary to add additional context.
The paper ‘Visualising An Open Finance Ecosytem‘ is a deep-dive into:
- Defining the core components of an Open Finance economy
- Mapping out the interconnected layers within Open Finance
- Revealing how Open Banking is one small part of the broader picture
- A use case for Open Finance that touches on point (1)