Open Banking Principles: The Future of all Consumer Tech

To lower the barrier to entry and for innovation in financial services…

That is what open banking stands for.

It’s an enabling technology that’s bringing a shift to data governance. The reason it’s happening is that your data belongs to you, NOT to your banks, healthcare providers or app creators.

And as we’re already seeing it rolled out in the financial industry, some of its principles are being implemented in several other industries.

Open banking is basically about opening your data to external parties who usually wouldn’t have access to them. This phenomenon has become normal in the health industry — giving your health records to external parties to help you better manage your health and offering advice to make you better.

Another point is data portability.

The ability to own your data and carry it along wherever you want to, rather than having it stored in banks, is a principle that open banking brought to reality.

Gone are the days when “silos” stored your data. Now, you have control. For instance, on Facebook, you can import your data from Gmail. Thus, in the event of a data breach on Google, you still have your information intact on Facebook.

Finally, comparison.

Open banking allows for the comparison of data among the various third parties you share your information with.

There were restrictions on healthcare services, but with apps like Medical ID, dminder, MyFitnessPal, etc., Consumers can compare various health programs that suit their budget.

These principles have shown how open banking goes beyond Fintech but all of consumer tech. They are only a fraction of what’s to come in the future, and it’s exciting to imagine.

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