Open finance

Open finance stems from open banking – the innovative yet structured way of sharing consumer data between financial service providers and consumers. But instead of just limiting it to banking, open finance covers a wide range of financial products which banks can include in their personal finance offering, such as insurance and pensions.

This is called open insurance, and it is where Insurely comes in – providing insurance and pension solutions in the open finance ecosystem.

What we talk about when we talk about open finance.

The ecosystem.

Open finance includes data sharing within a wide range of financial sectors and products, even non-financial industries such as healthcare or government. Consumers can securely share their data with trusted third-parties and, in turn, gain better experiences and personalized solutions, improving their financial health.

The technology.

Open finance is based on application program interfaces (APIs) which enable data to be shared with high levels of security, speed, and connection success. Consumers don’t have to share usernames or passwords and can, instead, trust the technology of APIs.

The regulation.

After the PSD2 directive was forced into the laws and regulations of every EU member country in 2018, banks became legally obliged to share customer data with third parties, allowing consumers to use external companies, such as fintechs, for their financial management.

How does it work?

Using secure connections powered by open finance APIs, consumers can share their financial data in a controlled way with third-parties, enabling better and personalized experiences. In turn, fintechs and other companies get fast and reliable access to accurate financial data, allowing them to create innovative products uniquely designed to meet customer needs. A win-win for everyone involved.

Create win-win experiences.

For banks.

With open finance, banks have the possibility to drive industry collaboration and increase the pace of innovation. By making smart decisions based on data insights, they can enable new business models and get a complete picture of their customers’ finances.

For consumers.

Open finance gives consumers control of their data. This way, companies and financial institutions will offer solutions that mitigate fraud and risk, enable personalized experiences, and ultimately improve their financial lives.

For insurers.

With open finance, insurers can provide innovative solutions to customers, such as seeing all policies in one place alongside other finances, understanding their level of coverage better, making renewals or switching easier, and offering personalized pricing. Open finance gives consumers control of their data. This way, companies and financial institutions will offer solutions that mitigate fraud and risk, enable personalized experiences, and ultimately improve their financial lives.