A relatively new phenomenon, Open Banking brings multiple parties together to analyse and make informed decisions about finances. Many people are confused about what it really is and why it’s an improvement on current practices. In this Macropay review, we break down this new banking technology.

What is Open Banking?

Open banking is also known as “open bank data”. It is a banking practice that helps you gain more power over your personal finances.

This new way of banking allows third-party financial service providers to gain access to your financial data from both banking and non-banking financial institutions. It does so using secure application programming interfaces (APIs).

It also allows mass networking of account data across consumer and financial institutions. Third-party service providers are able to give advice on your finances and manage them in the best way possible.

Open Banking with Personal Finances

The banking industry is one of the last industries to be revolutionised by the world’s technological advancements. Banking has been a largely outdated and traditional industry. However, with the rise of open banking, the industry is changing right before our eyes.

Open banking facilitates your online banking and gives you increased knowledge concerning your personal finances. Thanks to this data, you will be able to make informed decisions. A stark contrast to the limited data that traditional banking services allow you to access. 

This kind of banking service, as facilitated by third-party financial service providers, can be tailored to your personal financial needs. For example, it can help facilitate the usually tiring process of switching bank account types and bank institutions. Moreover, your personal spending behaviors and lifestyle will be taken into account. This makes it possible for service providers to give you access to highly-personalised online features.

Further Possibilities

With this new banking technology, the possibilities are endless. The introduction of it raises the potential for promising gains. Uses include comparing financial accounts and transaction history to garner profile data and tailored financial service options.

Your transaction data can also be analysed to identify the best savings routes and spending capabilities.

Businesses also benefit from open banking as it allows merchants faster turnover of funds. Eliminating the red tape usually experienced by businesses through traditional banking. In addition, software that cater to this new banking technology is built to counter fraudulent activity. This increases online banking security for both the business and its clients. With the rise of financial scams, a revolutionisation of the banking industry is a much needed step.

When accessing this new technology through Macropay’s payment system, both businesses and customers are safe.

Access Open Banking Today

Open banking can give you access to endless possibilities. Macropay is happy to support you on your financial journey. We have already integrated the framework of open banking into our payment gateway infrastructure. For more information, send us an email via [email protected] or click here.