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Enhanced Data through Open Banking


I am indebted to Bob Lyddon for his recent blog series “Predictions for the Payments industry in 2018”.

Bob argues that few clients are asking for “Open Banking” as opposed to “Enhanced Data”.  One of his main points is that:

“If the End-Users aren’t satisfied with the scope of data being sent direct to them by the ASPSPs now, will it going be any better coming through a Third-Party Provider (TSP)?”

As an SME using one of the big 4 business banking accounts, I can vouch that all the investment and better use of technology is aimed at the high end corporate market and not the SME or start up market.  We are left with aging systems that require tons of manual effort (csv file uploads in today’s world) that should leave us ripe for innovative services from TSPs if they are not just another leg in the chain, something I am yet to be convinced of.

What is encouraging is we are seeing some banks recognising the role that accountants play with their clients and are building feeds between online cloud accounting software and their own digital business banking offerings.  Whilst I doubt that this will filter down to the SME market in the short term, I am hopeful that down the line, I will get a better automated business banking service with enhanced data.

Having said the above, all new businesses in the financial services space face the same challenge which is client acquisition.  I believe that the future will show greater co-operation between start up fintech businesses to pool their services aimed at giving at better overall client experience to SMEs, which will allow for trusted advisors to offer additional value-added services that they can package for their clients.