Open finance is emerging as one of the trends key financiers in Europe.
The concept of open finance aims to allow consumers to share their financial data with third party financial services companies.
This will enable the creation of a more inclusive economy, transparent and consumer-oriented, as well as the development of new innovative financial services.
In Europe, Open Banking was the first step towards Open Finance.
As of 2018, financial institutions in Europe are required to make your data available to third parties under the Payment Services Directive 2 (PSD2).
The change allowed fintechs to access informationn of customers to offer new financial services such as price comparison, automated investing and personal budgeting.
Open banking in Europe has been successful, with more than 5,000
fintech registered with the European Banking Authority.
But Open Finance takes the idea even further, allowing companies to access financial information outside of bank accounts, such as investments, loans and insurance.
The new era of open finance
Although open finance is still in its early phases in Europe, are rapidly gaining momentum.
Various fintech companies and financial firms Established companies are already preparing for the new era of open finance.
For example, Revolut recently launched its platform stock trading and Klarna, a Swedish payments company, is expanding into full banking services.
However, there are still many challenges to overcome. before Open Finance is a full reality in Europe.
The biggest concern is privacy and security of customer financial data. Fintechs that have access
to customers' financial data must ensure compliance with strict security measures to prevent data leaks.
Another challenge is ensuring that consumers understand fully the risks and benefits of open finance.
Consumers should be aware that they are sharing your financial information and trust that financial technology companies use it correctly.
On which platform to use open finance?
Open Finance is a concept that is used in various platforms around the world, including Europe.
Open Finance platforms allow users access financial data and share it with third parties to obtain personalized and innovative services.
The most common platforms that offer services of Open Finance include:
Financial aggregators: These platforms allow financial users collect and view all their financial information in one place.
This includes bank accounts, credit cards, investments and other financial services.
Popular financial aggregation platforms include Yolt, Money Dashboard, and Emma.
digital banks: Digital banks offer complete banking services such as checking accounts, debit cards,
credit, loans and investments through mobile applications and online platforms.
Among the most famous digital banks are Revolut, N26 and Monzo.
Investment platforms: these platforms allow users to invest in different types of assets such as stocks, bonds and cryptocurrencies.
Among the most famous investment platforms there are eToro, Robinhood and Coinbase.
Wealth management companies: wealth management companies use technology to offer services
personalized investment and wealth management services for individuals and companies.
Some of the most popular wealth management companies are Nutmeg, Wealthfront, and Betterment.
P2P lending platforms: These platforms connect borrowers and investors and offer loans at competitive rates.
Some of the most popular P2P lending platforms are Zopa, Funding Circle, and Lending Club.
Conclution
In summary, Open Finance is a concept that is used on various financial platforms around the world.
These platforms allow users to access to financial data and share it with third parties to obtain personalized and innovative services.
The most common platforms include financial aggregators, digital banks, investment platforms, wealth management companies and P2P lending platforms.