With regulations surrounding data ownership, privacy and open banking now in full swing in multiple markets around the globe, opening up account data is now a requirement for many financial institutions (FIs).
This past year, however, the open banking model flexed its muscles in markets like the U.S., where even without a regulatory mandate, it gained traction and intensified competition.
While initially focused on the consumer market, open banking this year also began to demonstrate its potential value for the small to medium-size business (SMB) banking market. The same demand for data integrations between back-office platforms spread into the need for those FinTech solutions to also integrate with SMBs’ bank account data for faster, more accurate data entry and analysis.
Arjun Thyagarajan, co-founder and CEO at SMB banking and payments technology firm Wise, told PYMNTS that in 2020, SMBs’ continued demand for better banking experiences will inevitably drive the ongoing proliferation of data sharing.
Read this article on PYMNTS.com here.