Open Banking, and now Open Finance, are an accelerating global trend as more governments seek to open private financial sector data for broader use in the digital economy. The objectives of more competition, innovation, and consumer choice are laudable; however, the public and private sectors can benefit from a better understanding of the implications of these initiatives in the context of other new digital trends.
The digital transformation of financial services has already extended activities into broad ecosystems, shifted traditional roles, and given rise to new players. As the historic lines between sectors and services continue to blur, new trends in platformization have emerged, with consumers seeking a diverse set of offerings from a limited number of non-financial actors. At the same time the power of AI, mega data pools and, embedded services has come into focus. The impacts of these developments alongside new data policies evidence the importance of broadening the scope from Open Banking to Open Data not just Open Finance. Broadening this scope could realize many of the promises industry-specific data-sharing frameworks have fallen short of delivering.
IIF and Deloitte have joined together to explore the future of these ecosystems incorporating financial services. In this report, the first in a series Deloitte and IIF will publish throughout 2023, we outline how different data-sharing frameworks function as ecosystems with the potential to achieve goals for policymakers and market participants alike. The report builds on the insights we’ve received from more than 200 senior and C-suite executives, transformation leaders, thought leaders, investors, regulators, and government officials we have interviewed over the past 3 years. The report delivers thought-provoking insights on the following fronts:
- Roles and responsibilities.
- Common objectives of an Open Data ecosystem.
- Technological panorama and ecosystems.
- Strategic role of consumer data.
- Value generated.
- Key factors for success in Open Data Initiatives.