One of the key stakeholders in the financial technology space, Adedeji Olowe, has highlighted the huge benefits behind the adoption of open banking operations in the financial sector, if well utilized.
Olowe explained that open banking is transactional, and that customers’ data that resides with financial institutions belong to the customers. He added that if customers own the data, they should be able to have access to the data.
“The data belongs to the customers, as such; they should be allowed to have access to it in order to know if that data can be used for loan application. Personal finance expert should be able to see my data and tell me the prospects of my financial status.
“When open banking is available, customers can take those data, add it to other things and make meaningful insight out of it,” he said.
He added that open banking also allows people to engage in transaction without having a card.
“Someone in France can place his account number in Amazon, and Amazon can talk to his bank directly, debit his account for the transaction and that reduces the cost of transaction for everyone, banks, customer and Amazon. It speeds up innovation and transaction,” he said.
Olowe also added that if open banking is in place, financial inclusion would not be difficult to achieve.
“With open banking, financial institutions with NGOs and others will connect directly to the banks without an intermediary and be able to transact with everyone easily”, he said.