We have entered the age of an unprecedented shift in almost every economy that touches our lives. The changes now range from being deceptive initially to outright disruptive rapidly. The waves are affecting us in the way never seen before.
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Money is very personal, and come to think of, is central to everything we do. Every single thing that you possess or are surrounded with has been produced in exchange for money. The movement of money or transaction has been engineered many times over in the past few decades creating a strong intertwined relation between banking and technology. Traditionally considered as two different industry are rapidly merging in an infinite loop. Each evolving from each other. Did the banking world influence the technology advances or did the technology advances opened up various banking possibilities? There are fair arguments on each side. Disregarding their origin, the two almost parallel worlds are now coming together like the Siamese twins.
Is banking a service from a technology company or is technology being reinvented by banks? Technology and finance will soon become synonymous.
Open Banking is coming soon and is going to bring us to this new world. First, let’s understand what Open Banking is in ordinary terms. Once Open Banking becomes mainstream, all banks will be required to play nicely in the so-called banking sandbox to improve the consumer experience using technology for connecting all our banking footprints. You and I as bank customers will be digitally wired to all our banking relationships across all banks as One Bank.
Seamless transactions between banks are just one of the outcome of this change. It will open up numerous possibilities for both consumers and providers. While these changes are welcoming and are going to be beneficial to us, we will need to get comfortable with exposures at a whole different level.
We will cover the possible impacts to consumers and institutions in the coming series.
To be continued.
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