- by Patrick Cooney on 15/12/2020
Open Banking is a term many might not have heard of but it won't be the last time you hear of the new initiative that is set to transform the way businesses and consumers use banking and financial services.
Introduced to Ireland in 2019 under new EU regulations (PSD2 or Second Payment Services Directive), 'Open Banking' aims to provide choice and foster innovation in the banking services market by allowing third party providers access to bank account data. This access will give the customer more control over their data as well as making it easier to share.
There are many advantages to this new form of 'transparent banking', from being able to view all your accounts from different banks in one location to making it easier to get a loan. In the months ahead more and more people and businesses will allow interested parties access to their bank accounts, with a view of benefiting from faster credit approvals, preferential finance rates and increased financial leverage and creditability, and lots more - based on their strong account performance.
As an example, for businesses operating in uncertain times it will allow trusted third party providers regulated by the Central Bank, like CRIFVision-net act as an intermediary based on your latest data, to provide an independent recommendation to your prospective business partners - on your risk as a customer. This can be done in real-time, so it's instant and avoids the company having to share commercially sensitive data with a potential prospect. It might also help you stand out from the crowd in a tender process where part of the due diligence is automatically done for the company issuing the tender.
The key to the success of Open Banking is control. Permissions can be given or taken away at any time. The customer is the only one who decides if and what data is shared and with who. Whether it is allowing an app access to all your transactions and balances in order for you to better manage your finances, or just simply allowing trusted partners like CRIFVision-net share the benefit of your financial position when you are seeking credit, finance or looking to enter a lease etc, with a third party.
And of course, if you never want to share your data, you never have to. However, banks must, under PSD2 make this available to all customers, if they should need it.
Any third party provider who gains access to your bank account data through Open Banking technology needs to be regulated by the Central Bank of Ireland must comply with very strict EU laws and regulations, so you can trust that your data is safe.
Any payment accounts such as Personal & Business current accounts, credit card accounts and online banking accounts can be used with Open Banking. 'Challenger banks' such as the likes of Revolut are also included.
In order to avail of the benefits of Open Banking, bank accounts must be set up for online/mobile banking. All Irish banks offer quick and simple online set-ups for your already established bank accounts so you can get set up for e-banking in no time, if you haven't already.
CRIF Realtime Ireland Ltd are already a trusted registered provider of Open Banking solutions and are regulated by the Central Bank Of Ireland. CRIFVision-net will be working with CRIF Realtime - so stay tuned - our innovative new solution will to take your business and consumer credit evaluation process to the next level!
If you would like to express your interest and be contacted as soon as it becomes available, email - Helpdesk.firstname.lastname@example.org and we will make sure to get in touch.
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