Open Banking fosters an increased competition within the financial services market to accelerate financial inclusion by acquiring and addressing the financial needs of the unbanked, underbanked and ‘unhappily-banked’ populations. It acts as a catalyst for digital transformation while bringing in more innovation to the traditional banking practices and makes the financial offerings affordable to the unbanked community. As the term suggests, Open Banking believes in democratising access to banking services and making them available in real-time to the customers so that they can better manage their finances.
According to the research data published by World Bank, it is estimated that the banks could generate over $380 billion by acquiring the unbanked population only around the MENA region, as almost 69% of adults continue to remain unbanked. Globally, 1.7 billion adults (or 31% of adults) are estimated to not have even a basic transaction account. The transition to the new open ecosystem builds a profound opportunity to forecast a surge in the bank’s revenue. The perks of adopting a well-defined Open Banking platform extends beyond the scope of monetisation to re-engineer the bank’s portfolio and business model to accelerate into new market space by automating the customer onboarding, digital KYC/AML verification and real-time transaction monitoring processes.
Open Banking has the potential of promoting financial inclusion to the unbanked population by making it seamless for them to create an accurate and reliable financial profile which in turn makes them eligible to access the mainstream financial products and services. For the banks, it aids in widening the pool of potential customers by having a deeper understanding of the prospect’s financial history in a quick and effective manner significantly reducing the operational expenditures.
Open Banking strives to remove the barriers that exclude people from participating in the banking services. Thus, Financial inclusion built on sustainable business models such as open banking embraces a more inclusive financial culture and brings all categories of individuals and small businesses into an ecosystem where they can further integrate and flourish as a broader economy.
With Macro Global by your side, Transformation into Open Banking is no more a ‘Big Bang’ or ‘Rocket Science’ for the banks. Click Here, to know more about how MG empowers the banks with its “ Tavas- Open Banking Product Suite and Solutions ” to be both transparent and secure when engaging with third-party providers (TPPs) in their journey of Open Banking transformation. Macro Global has several use cases around this and can assist FIs to implement with right combination of APIs and technologies leveraging from existing OB ecosystem to achieve the desired business results.
To discover more on how Macro Global with its subject matter expertise can help you address the challenges, please reach us out on firstname.lastname@example.org (or) +44 0207 993 2009