In our rapidly digitalizing world in every field, banking transactions and financial processes are also undergoing a major transformation every day. Banking transactions, which were carried out labor-intensively through branches for years before the 2000s, are rapidly becoming digital with the support of developing computer and internet technologies. In banking, after ATMs, internet banking is the first step of digitalization for customers. The number of online banking transactions and the capabilities of banking applications continue to evolve. Like internet banking, mobile banking also offers many new services to customers. Along with mobile banking, the most striking issue was the steps taken to personalize banking transactions.
With Open Banking, Customers Own Their Own Data However, the development of internet and mobile banking and the increasing variety of services make the monitoring and management of processes very complex, especially for companies working with many banks. Open Banking is the name of the new technology offered to us by the digital world, which is looking for a solution to overcome the emerging chaos and management difficulties. Open Banking takes the personalization process offered by mobile banking one step further and draws attention as platforms that offer people together at all banks, not bank to bank. Thanks to Open Banking technologies, banks no longer own the data; can be customers. Customers, who have to visit the digital platforms of banks one by one in order to access their own data, can more easily manage their data and track them from a single platform with Open Banking. In other words, Open Banking is not for banks; It offers the opportunity to manage your financial processes according to banking transactions. With the completion of legal regulations and licensing processes, Open Banking platforms will be able to offer payment initiation services to their customers in the very near future.
Bridge Between Banks and Customers: Open Banking and Fintechs As the most fundamental difference between classical banking and Open Banking concepts; we can talk about a third element that is included between banks and their customers. Open Banking, third party companies, which allows the collection of transactions in different banks on a single platform / screen / application and the processing of the obtained data on the basis of transactions independent of banks; that is, it invites fintechs to the process.
A New Customer Experience: Open Banking Instead of visiting each bank's online channels separately for your transactions in banks, digital platforms that present these banks and transactions on a single screen form the heart of open banking technology. From this point of view, another difference between normal banking transactions and open banking is the customer experience. Open banking applications, developed in accordance with the authorizations and definitions determined within the framework of the laws, access the systems of the banks you work with, based on the permission given by the customers, and gather the data you need for you.
Time and Labor Savings in Financial Processes Especially for companies working with different banks, we can count the ease of data access and analysis as the most important advantage of the Open Banking period compared to the normal banking period. In addition to getting rid of the trouble of tracking your transactions from each bank separately, Open Banking platforms offer the opportunity to easily process the data you obtain. Open Banking applications, which can be integrated with ERP/accounting software, minimize the operational burdens in the management processes of companies. In summary, Open Banking helps you save a lot of time and effort compared to classical banking methods in the processes of collecting, analyzing, reporting and archiving data in banking transactions.
