The potential of Open Banking remains “largely untapped” and platforms have the capacity to address the unmet needs of SMEs, according to an industry expert.
Robert McKechnie, senior manager at information solutions company Equifax UK, has predicted that Open Banking will be at the forefront of the fight against financial fraud in 2020.
“Open Banking, which was brought into inception two years ago, was predicted by many to spark a revolution in consumer finance,” said Robert.
“However, its full potential remains largely untapped.
“Two of the main pain points for start-ups and would-be entrepreneurs are access to credit and inflexible payment plans.
“Open Banking solutions now exist that can overcome these obstacles, supporting businesses with thin files by, for example, drawing upon personal finance history.
“Further development of such platforms will help align the needs of the vital SME sector with providers of finance and allow firms to amplify their understanding of spending patterns and periodic stress points.”
Open Banking solutions are on course to fully digitise and streamline the credit application, consent and verification processes within the mortgage, insurance, automotive and utilities spaces, according to Robert.
“While the impact of Open Banking hasn’t been as immediate or as seismic as initially predicted, it has irrevocably shifted the banking and wider financial services landscape for the better, and must continue to develop and broaden in 2020.”
SIGN UP TO OUR NEWSLETTER TO RECEIVE MORE NEWS LIKE THIS STORY
-
Rigour builds resilience
There is a relentless flow of new technologies and development methodologies unfolding on many fronts in the financial services arena...
-
Enhancing offerings to SMEs with the use of technology
Small- and medium-sized enterprises (SMEs) make up a significant proportion of British businesses...
-
New digital bank Vive receives banking licence
New digital bank Vive has received its UK banking licence with restrictions from the Bank of England...
-
Aldermore names Damian Thompson as new group MD for retail finance
Aldermore has named Damian Thompson (pictured above) as its new group managing director for retail finance, subject to regulatory approval...
-
Tink closes €90m investment round
Tink has completed a €90m (approximately £76.8m) investment round — its largest funding to date — to support its European expansion...
-
Step back from the hype: what can AI realistically deliver in 2020?
While talk of artificial intelligence (AI) in financial services generates great excitement, it’s important not to get too carried away and caught up in overly ambitious uses of the technology...
-
Temenos launches microservices architecture tool for large banks
Banking software company Temenos has launched Temenos Transact — a microservices-based architecture tool designed for large banks...
-
Starling Bank enhances product offering for SMEs
Starling Bank has enhanced its product offering for businesses and sole traders with a range of new features...
-
2020 vision: Open Banking is open for business
Last year was a major one for Open Banking. September’s PSD2 deadline encouraged banks to accelerate their efforts to become compliant, and while the nuts and bolts of the technology did pose a challenge, the opportunity for both banks and third-party providers (TPPs) has finally come to light...
-
FCA calls for easy access cash savings reform
The FCA has proposed to reform the easy access cash savings market...
-
HTB launches new 30-year, interest-only loans
Hampshire Trust Bank (HTB) specialist mortgages division has launched 30-year, interest-only loans...