Open banking. It’s like Uber, but for banking. And better.
3 min read
What’s with all the buzzwords in the financial services space? Blockchain. Bitcoin. Forex trading. Open banking. It’s tough enough knowing what they all mean. Even tougher knowing what they actually do for us.
At Spot, we’re all about open banking. So let’s talk about what it is. What it isn’t. And why it matters.
Open banking is digital.
Digital is the future: of banking, of shopping, of everything. As a result, we’re seeing a huge number of new banking channels and services: mobile, contactless, instant. Mostly mobile, actually. In Business Insider Intelligence’s Mobile Banking Competitive Edge Study, 89% of survey respondents said they use mobile banking. In fact, mobile banking is growing five times faster than online banking – and we can see why.
Open banking makes your life easier.
We’re seeing traditional retail banks offering more digital services than ever. But if a bank takes the same product they’ve had forever, makes you apply for it in the same way, and then puts it online, is it really digital? Is it even making your life better? The short answer is ‘no’. We don’t want to simply replicate what’s been done in the physical world for decades. We want something better. And that’s where open banking comes in. We’re creating new ways for you to bank, manage your money, and make your money move.
Open banking brings people and products together.
Open platforms take the hassle out of old ways of doing things, and generally make them cheaper and easier. Look at Amazon, Google, Uber, Airbnb, and numerous others. They took old industries and turned them on their heads. They don’t own the assets they trade in. But what they do brilliantly is to bring together buyers and sellers in one place. It’s the same with open banking. Open banking platforms don’t limit you to products and services from one bank. Instead, they create a marketplace where as many outside players as possible offer their financial services to the people who want them.
Open banking gives you choice.
At Spot, we see open banking as a no-strings-attached way of managing your money. We’re not aligned to any specific bank. Being bank-neutral means we can partner with a range of financial service providers. We don’t lock you into only seeing products from your existing bank. We keep our relationships open, to keep your choices open. Think of us as a Neighbourgoods Market for your financial services products. Insurance. Loans. You choose what you like, when you like it. And yes, it’s 100% digital and mobile.
Now that’s a future we can get behind.