What’s next for the Open Data revolution?
The FST Media Banking Summit 2020 kicked off today, with Finder Australia's CEO Chris Ellis joining the "Future of Open Data" panel along with Alex Twigg from Judo Bank and Mani Rajagopalan from Singapore's DBS Bank.
In a candid discussion, the panellists discussed use-cases for Open Data, why right access is the unlock for end-to-end user experience, the future role of screen scraping and strategic considerations for partnerships.
Below is a preview of what was discussed, but if you have any feedback or would like to hear more about what Finder is working on, please reach out to us at openbanking@finder.com.
Use-cases of Open Data and Open Data partnerships
The panellists unpacked use-cases of how Open Data has played out within their organisations from both a product and partnership perspective.
Finder is exploring ways to better use data in partnerships to create new value for consumers. For instance, Ellis said Finder is using credit score data for the Finder app's "chance of approval" feature, so when a user applies for a personal loan, they get an indication of how likely they are to be approved for the loan before actually applying.
Why is write access the unlock for a frictionless user experience?
Until you can give a third party the ability to enable customers to take action (rather than just view or recommend), the customer experience is clunky.
The "write" capability will allow users to actually take action. Think opening new accounts or making payments. It seems like write access is more of a when than if question, and this will be driven by consumer demand if not the regulation. This will provide a seamless end-to-end user experience.
Right now, customers have to jump in and out of multiple apps, so enabling write access will be a game-changer for the industry. As Twigg put it, "If you had to walk to your desk phone every time your iPhone told you to make a call, it would be frustrating."
Ellis pointed out that investing in user experience (UX) will allow businesses to differentiate by providing a frictionless experience.
So how does screen scraping feed into all of this?
The panellists said the availability of data will shift towards the Consumer Data Right (CDR) path as a more reliable and secure platform. That said, screen scraping will remain relevant, particularly as the CDR is rolled out to other industries beyond banking.
Ellis said while the "how" could be improved, what's important is the "what" – which is empowering customers to access their own data so they can make better decisions.
Strategic partnerships: What criteria do you look for?
The panellists claimed businesses need to focus on identifying the value, profitability and governance approach of a potential partner, and that commitment from leadership is key to driving strategic partnerships.
Ellis said Finder is always happy to help with both tactical and strategic partnerships. If partners want to quickly drive customer acquisition in a tactical way, he said, Finder can definitely help. At the same time, if partners want to build something more strategic, then Finder can also assist. He noted that cultural fit is important for strategic partnerships, but the main thing is that something can be delivered together that neither party could deliver alone.
The panellists agreed there's opportunity for incumbents to partner with fintechs if they want to get a competitive edge in the market.
How do you manage data privacy concerns when working with third parties?
Finder's research shows 71% of consumers don't know what the CDR is, yet we know all users are concerned about privacy. Ellis outlined Finder's position of being on the side of the consumer and how becoming accredited brings a high level of security at an execution level.
Twigg said the entire banking industry is built on security, privacy and trust – it's at the heart of everything they do.
It was an insightful conversation about the future of Open Data, strategic partnerships and innovation, so watch this space and reach out to us at openbanking@finder.com if you have any questions.
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