Open Finance is revolutionising the financial services industry and is a vision that aligns closely with this year’s Sibos theme of ‘Connecting the future of finance’.</em></p> For me, Open Finance simply means that banking, financial services and financial ecosystems are open – open to new service offerings, revenue streams and markets; enhanced customer experience and retention; improved risk management; and increased competitive advantage. And all of this is underpinned not just by open technology, but also by an open mindset and culture that’s evident today as we collectively shape the future. </p> The benefits of Open Finance can be viewed through three lenses:</p> New financial ecosystems</h4> One of the primary benefits of Open Finance is the facilitation of wider access to banking services through embedded finance, but more broadly it’s about putting the customer back at the centre. It means meeting them on their journey, using technology to build fintech ecosystems which bring together all the solutions a person might need on their journey to buy a home - mortgage, utility optimisation, home moving services, for example, whether these solutions are offered by the bank or not. </p> Harnessed correctly, technology enables financial institutions to build or leverage new ecosystems for growth, enhance efficiency, adapt to changing customer demands, and importantly - continually upgrade on customer experience.</p> Driving sustainable decision making</h4> Finance has a vital responsibility to support driving sustainable investment and facilitating the transition to a low-carbon economy. By connecting capital with impactful initiatives, financial institutions can support projects that promote environmental and social sustainability.</p> In addition, Open Finance plays a crucial role in driving sustainable decision making through its ability to provide a transparent and holistic, data-informed view – all contributing to a more resilient, democratised and inclusive ecosystem. With greater democratisation of financial services also comes greater positive impact. Reducing financial barriers ensures that more money goes to the people and businesses that need it, lowering high cross-border transaction fees for example, or overcoming the challenges associated with making trade finance accessible to micro and small businesses.</p> Supporting positive societal change</h4> When it's open, finance can transform societies and help more people access the banking services they need to prosper. Leveraged responsibly, technology can boost financial inclusion by reducing bias and championing a more progressive, equitable and accessible banking sector, bridging the banking gap and reducing the numbers of unbanked and underbanked in our societies. </p> Digital tools bring more opportunities to more customers and can often transcend economic and geographical barriers; simply put, Open Finance empowers economic growth. Ultimately, better finance means better futures and better outcomes for people and communities.</p> In conclusion, Open Finance is transforming the industry by promoting collaboration and new financial ecosystems, using data and technology to take more informed and sustainable actions, and accelerating positive societal change through improved customer experiences with personalised and equitable services. </p> From fairer and faster payments to helping banks to make more informed lending decisions for small businesses or green finance, Open Finance is at the forefront of progressive change. We’re fortunate to live in an era where such innovations are possible, and it falls to all of us to seize this opportunity to work together and innovate, and ultimately deliver shared outcomes that benefit all of society.</p> The Sibos Insider Blog provides inspiring insights from financial industry experts and influencers. The blogs provide informed thought-leadership on a range of topics. The opinions expressed in these blogs reflect the personal views of the author and not their organisation, Sibos, or Swift.</em></p>