# Open finance – the next step for global digital transformation Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-08-19 Category: FINANCE Category URL: https://financedigest.com/category/finance Meta Title: Open Finance Revolution: The Future of Financial Services Meta Description: Discover how open finance is set to revolutionise the financial services industry, providing consumers with complete control over their financial data and URL: https://financedigest.com/open-finance-the-next-step-for-global-digital-transformationhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/graphicstock-business-concept-businessman-working-laptop-worldwide-connection-technolo-sbi-301990018-1-1736838000850-compressed.jpg) ![Stefano Vaccino, CEO Yapily](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/stefano-vaccino-450x675-1736838000917-compressed.jpg) _By_ **_Stefano Vaccino,_** _CEO Yapily_ The pandemic [turbo-charged digital transformation](https://www.independent.co.uk/business/pandemic-has-turbocharged-digital-transformation-report-finds-b1886296.html). Nowhere has this been more evident than it has been in financial services where we’ve seen a huge uptake in open banking adoption. So much so, it’s predicted that by 2024 the number of open banking users worldwide will reach 63.8 million. While global developments in the space have been a shining example of digital transformation for good in action, this is only the beginning. There is so much scope for disruption across the board and we’re on the cusp of an open finance revolution. [**Revolution is coming**](https://www.financedigest.com/the-contextual-revolution-is-coming-igtb-unveils-vision-for-transaction-banking-future-in-two-new-whitepapers.html "The contextual revolution is coming: iGTB unveils vision for transaction banking future in two new whitepapers") The case for [open finance](https://www.financedigest.com/the-future-of-open-finance.html "The Future of Open Finance") can’t be overstated. Open [finance will give consumers complete control over their financial data and help millions of people make better habits when it comes to money](https://www.financedigest.com/student-finances-exposed-how-do-they-really-spend-their-money.html "Student finances exposed: How do they really spend their money?") and savings. It really will create true [financial inclusion](https://www.financedigest.com/why-banks-could-stand-to-learn-a-thing-or-two-about-financial-inclusion-from-fintechs.html "Why banks could stand to learn a thing or two about financial inclusion from fintechs") for all. In the very [near future](https://www.financedigest.com/metal-powder-market-experience-tremendous-growth-in-near-future-finds-fact-mr.html "Metal Powder Market Experience Tremendous Growth In Near Future, Finds Fact.MR"), third party providers (TPPs), with their customers’ consent, will be able to gain access to mortgage, investment, insurance, savings, pension and potentially other, more granular data. With this insight, innovative [companies – many of which don’t even exist yet – will provide tailored financial](https://www.financedigest.com/how-financial-services-companies-can-successfully-utilise-low-code-and-no-code-technologies.html "How financial services companies can successfully utilise low-code and no-code technologies") products that suit individual circumstances and needs. With such a wide pool of information about their customers’ financial lives, there will be an abundance of personalised services and products; which will act as a catalyst for innovation in the market, encouraging players to [digitally transform](https://www.financedigest.com/world-class-finance-digital-transformation-and-analytics-based-decision-making-among-key-imperatives-for-creating-finance-agility.html "World-Class Finance: Digital Transformation and Analytics-Based Decision Making Among Key Imperatives for Creating Finance Agility") to remain competitive and attract customers. **Coalitions will** [win the open finance battle](https://www.financedigest.com/lindt-wins-chocolate-bunny-battle-in-swiss-court.html "Lindt wins chocolate bunny battle in Swiss court") While we in the UK are one of the [leaders in the open finance](https://www.financedigest.com/how-finance-leaders-can-turn-the-inflation-challenge-into-opportunity.html "How finance leaders can turn the inflation challenge into opportunity") pack, there’s so much we can learn from others around the globe. Ultimately to help the revolution on its way, we [need a centralised approach to open finance](https://www.financedigest.com/what-needs-to-happen-to-improve-the-landscape-for-smes-trying-to-access-finance-options-in-the-uk.html "What needs to happen to improve the landscape for SMEs trying to access finance options in the UK"). Without frameworks or attractive commercial incentives in place, it’s unlikely the [ecosystem will deliver open](https://www.financedigest.com/what-does-2022-hold-for-open-banking-some-predictions-from-the-ecosystem.html "What does 2022 hold for open banking? Some predictions from the ecosystem") finance in a timely manner. We need a stronger [sense of urgency](https://www.financedigest.com/consolidated-audit-trail-a-renewed-sense-of-urgency.html "Consolidated Audit Trail: a renewed sense of urgency"). Regulators will [play a vital role](https://www.financedigest.com/why-the-bank-branch-still-has-a-role-to-play-for-consumers.html "Why the bank branch still has a role to play for consumers"). We only have to look across the pond to see how powerful they will be in making [open finance](https://www.financedigest.com/tomorrows-finance-the-latest-innovations-in-open-banking.html "Tomorrow’s Finance: The Latest Innovations in Open Banking") a reality. [President Joe Biden issued a number of consumer-friendly executive orders](https://www.finextra.com/the-long-read/234/why-bidens-executive-order-is-a-green-light-for-us-open-banking) back in July that will pay real dividends for ensuring the US has a smooth transition to first open banking, and then open finance. We should also be looking to [Australia and Canada](https://www.financedigest.com/brazil-to-resume-visa-requirements-for-us-japan-australia-canada-sources.html "Brazil to resume visa requirements for US, Japan, Australia, Canada -sources") for inspiration and learnings. Australia’s [Consumer Data Right](https://www.altfi.com/article/8170_the-altfi-view-on-the-future-of-open-banking-more-direction-less-debate) provides Australians with the right to access all of their financial, utility and telecoms data. While the open-by-default approach took longer to implement than expected, the country now has a solid roadmap for fast-tracking [open finance across](https://www.financedigest.com/open-finance-can-help-unlock-innovation-across-the-financial-ecosystem.html "Open Finance can help unlock innovation across the financial ecosystem") the board. In Canada, they have a similar plan of action, [with a start date of 2023](https://www.finextra.com/newsarticle/38608/canada-sets-2023-target-for-open-banking-regime) already in place for their open banking roll-out. Back on home soil, the Department for Business, Energy and Industrial Strategy (BEIS) has promised to legislate that the industry be involved in Smart Data initiatives, [including open finance](https://www.financedigest.com/ing-toughens-oil-and-gas-policy-to-include-trade-finance-midstream.html "ING toughens oil and gas policy to include trade finance, midstream"). Additionally the Kalifa Review, commissioned by the Treasury, acknowledged the importance of open [finance in determining the future of the fintech](https://www.financedigest.com/3-key-ways-you-can-transition-from-finance-to-fintech.html "3 key ways you can transition from finance to fintech") sector in the UK. The [proposed alliance between industry and government](https://www.financedigest.com/carrefour-unveils-30-euro-shopping-basket-in-spain-after-government-price-cut-proposal.html "Carrefour unveils 30 euro shopping basket in Spain after government price cut proposal") will be absolutely necessary to deliver it. As the main regulator for most of the firms that would deliver this initiative, the FCA must take point as the main [driving force](https://www.financedigest.com/rapid-action-force-regarding-innovations-to-drive-the-medical-devices-market.html "Rapid Action Force regarding Innovations to drive the Medical Devices Market"). Not only does it have the expertise but also the powers to implement, supervise and enforce legislative requirements on the ecosystem. **The next [step to global](https://www.financedigest.com/international-investment-soars-as-albania-steps-into-global-spotlight.html "INTERNATIONAL INVESTMENT SOARS AS ALBANIA STEPS INTO GLOBAL SPOTLIGHT") transformation** The next [steps in the global open finance](https://www.financedigest.com/5-steps-to-successful-supply-chain-finance.html "5 Steps to successful supply chain finance") journey need to be based around a centralised, top-down approach. While we have seen good developments from [regulators and industry](https://www.financedigest.com/how-solvency-ii-transformed-itself-the-fund-industry-and-regulation.html "How Solvency II transformed itself, the fund industry and regulation") bodies, this approach must come from a centralised industry figure in each country. Only then will companies be able to evolve from open banking, [digitally transform and win the battle for open finance](https://www.financedigest.com/digital-transformation-for-the-world-of-finance-the-rise-in-collaboration-tools-and-saas-applications.html "Digital transformation for the world of finance: The rise in collaboration tools and SaaS applications "). --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---