The financial industry is on the verge of a major shift with the emergence of Open Finance. Legacy technology and lack of access to financial data has hindered innovation and created friction in the customer experience. Open Finance will change this by providing secure and reliable access for customers to share their data.
Open Finance is a step beyond Open Banking, which only allows for the sharing of data between system vendors and banks. Open Finance enables access to a wider range of financial products and services, such as sales invoices, supplier invoices, payments and account balance.
Zwapgrid defines Open Finance as the ability to access and act on financial data to build personalized experiences, increase the pace of innovation and drive industry collaboration.
Open Finance enables everyone to access and act on financial data to:
- Increase transparency and trust between the company and its creditors.
- Mitigate fraud and risk.
- Make intelligent decisions through data insights.
- Build personalized user experiences.
- Enable new business models.
- Support financial health.
At Zwapgrid, we believe the future of our industry means embracing Open Finance. It begins with secure and reliable access for business owners to share their financial data with the apps and financial institutions they choose to use. Fast growing companies that rely on external financing can greatly benefit by allowing creditors to access their current revenue growth and other relevant real-time metrics.
Financial Data Sharing today and tomorrow
The current method of financial data sharing, which mainly relies on the sharing of SIE-files, PDFs, or screen scraping, poses several security risks and limitations. These methods are less secure, limit the visibility of financial institutions, and require businesses to share sensitive information such as usernames and passwords with third parties.
However, the use of Open Finance APIs can solve these problems by allowing businesses to share their transaction data without the need to share sensitive information. Direct connections through these APIs use tokens instead of credentials, providing higher levels of security, higher speed, and better connection success rates.
Zwapgrid is in the center of these exciting transformations, stay tuned for updates!