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» Open Baking the evolution of financial services

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Open Banking is an evolution before the arrival of APIS FIRST that helps companies to offer hyper-personalized products and services and segmenting services based on data obtained from other financial entities. One of the principles of this business model is that financial entities help and collaborate with each other, in order to better understand their consumers or clients, says Yoliztli.

To understand this figure, we must know that the information that is in the possession of financial entities is personal data owned by each user or person, he assured Yoliztli; reason why it manifests that it is an obsolete vision to consider the fintech as a threat to banks, since many of them face a new era of transformation open to alliances and building better products for their customers hand in hand with technology partners.

Benefits of open banking

Give one global vision of the financial situation of the clients, the Open Banking gives the possibility of visualizing and analyzing people’s financial information in a single place, which allows creating personalized products based on their needs:

Personal Finance Management: personal finance management tools that help customers better understand their expenses and income, in order to create budgets according to their current finances and, where appropriate, establish automatic savings rules.

Segmentation and personalization of offers: Knowing the products that each of our clients has contracted opens the possibility of offering products according to their needs.

Acquisition of new clients: allow financial entities to take advantage of the information obtained to offer personalized services at a low cost in Marketing and commercial areas, with the incorporation of financial services in third-party channels, for example, in e-commerce.

Yoliztli explained that, in accordance with the provisions of the LRITF, Circular 2/2020 and the APIS Provisions, the entities authorized in Mexico to share data and information are: financial entities, money transmitters, SICs, clearing houses, Financial Technology Institutions and companies authorized to operate with innovative models. However, such entities are limited to sharing only three types of data and only among themselves, which are the following:

Open Financial Dataare those generated by the entities that do not contain confidential information, such as general information on the products and services they offer and the location of their offices, branches, ATMs and other access points to their products and services.

Aggregated Datais the statistical information of operations carried out by or through the Entities without containing a level of disaggregation such that the personal data or transactions of a person can be identified.

Transactional Dataare those that are related to the use of a product or service, including deposit accounts, credits and means of disposition contracted on behalf of the Entities’ clients, among other information related to the transactions that the clients have carried out or attempted to carry out in its technological infrastructure.

Additionally we have two players in the figure of the Mexican Open Banking:

data providersto financial entities, ITF, companies authorized by the CNBV to operate with innovative models and money transmitters, which are required to establish APIs in order to share Data.

data requestersto financial entities, ITF, companies authorized to operate as innovative models, money transmitters and third parties specialized in information technology.

Now, about Open Banking, to date there is only what refers to ATMs that continues without standing out, we are still waiting for the secondary regulation on Transactional Data and Aggregated Data.

In YG they are ready to advise on these issues and provide the best consulting support for the implementation of your Open Banking.

Visit http://ygconsultores.com.mx

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