In our rapidly digitalizing world, banking transactions and financial processes are undergoing significant transformations every day. For many years prior to the 2000s, banking transactions were predominantly labor-intensive and conducted through physical branches. However, with the advancement of computer and internet technologies, these transactions are rapidly shifting towards digitization.

The introduction of ATMs marked the initial step towards digitalization for customers in the banking sector. Over time, internet banking emerged as a pivotal development, enabling customers to access a wide range of banking services online. The scope of services available through internet banking continues to expand, driven by ongoing advancements in technology.

Customers Own Their Own Data with Open Banking

Furthermore, mobile banking has gained prominence, offering customers convenient access to their accounts and an array of banking services through their smartphones and tablets. One of the most notable aspects of mobile banking is the emphasis on personalization, tailoring banking transactions to individual customer preferences and needs.

Despite the numerous benefits of internet and mobile banking, the proliferation of services and the increasing complexity of financial processes have posed challenges, particularly for companies that engage with multiple banks. This is where “Open Banking” comes into play as a groundbreaking solution in the digital world, addressing the complexity and management difficulties that have emerged.

Open Banking empowers customers by allowing them to have greater control over their financial data. It introduces a framework where customers can securely share their financial information with third-party applications and services, offering a more streamlined and personalized banking experience. This technology not only enhances the convenience of banking but also opens up new possibilities for innovation in the financial industry.

In conclusion, as our world continues to embrace digitalization, the banking sector is at the forefront of this transformation. Internet and mobile banking have revolutionized the way customers access and manage their finances, and Open Banking is the next frontier, promising even greater control and personalization. This evolution is reshaping the financial landscape and creating opportunities for a more efficient and customer-centric banking experience.

The Bridge Between Banks and Customers: Open Banking and Fintechs

The main difference between traditional banking and Open Banking is that a third party comes between banks and their customers. Open Banking, which allows transactions from different banks to be collected on a single platform/screen/application and the data obtained to be processed on a transaction basis independent of banks, invites third party companies; in other words, fintechs to the process.

A New Customer Experience: Open Banking

Digital platforms that offer these banks and transactions on a single screen instead of visiting the online channels of each bank separately for your transactions in banks constitute the heart of open banking technology. In this respect, another difference between normal banking transactions and open banking is the customer experience. Open banking applications, developed in accordance with the authorisations and definitions determined within the framework of the laws, securely access the systems of the banks you work with based on the permission given by the customers and bring together the data you need for you.

Time and Labour Savings in Financial Processes

Especially for companies working with different banks, the most important advantage of the Open Banking era compared to the normal banking era is the ease of access and analysis of data. In addition to getting rid of the trouble of tracking your transactions separately from each bank, Open Banking platforms offer the opportunity to easily process the data you obtain. Open Banking applications, which can be integrated with ERP/accounting software, minimise operational burdens in the management processes of companies.

In summary, Open Banking helps you save significant labour and time compared to conventional banking methods in the processes of collecting, analysing, reporting and archiving data in banking transactions.