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Open Banking Solutions

Open banking is a financial services term that refers to the practice of sharing financial data and services with third-party providers, such as fintech companies, in order to provide consumers with more choice, control, and convenience when it comes to managing their money. Open banking allows third-party providers to access a user's financial data with their permission, and use that data to create new products and services, such as budgeting tools, comparison platforms, and personalized financial advice. Open banking is regulated by government and industry bodies, and is designed to be secure and transparent, with clear rules and protections for consumers. By opening up access to financial data and services, open banking has the potential to create more competition and innovation in the financial sector, and to provide consumers with better, more personalized experiences.

The number of open banking users worldwide is expected to grow at an average annual rate of nearly 50% between 2020 and 2024 to over 132.2 million users, with the European market being the largest projected to be at 25 million user

As a field, open banking is still lagging behind in Africa mainly because of lack of legislation around the matter with Central Bank of Kenya looking to build infrastructure with stakeholders by 2025. We at AEY Group are closely following up this frontier and will be looking to roll out several products especially in Fintech.

Open Banking FAQs

What is open banking?

Open banking is a financial services term that refers to the practice of sharing financial data and services with third-party providers, such as fintech companies, in order to provide consumers with more choice, control, and convenience when it comes to managing their money. Open banking allows third-party providers to access a user's financial data with their permission, and use that data to create new products and services.

Open banking is important because it has the potential to create more competition and innovation in the financial sector, and to provide consumers with better, more personalized experiences. By opening up access to financial data and services, open banking can enable new companies to enter the market and offer customers new and improved products and services. This can lead to increased competition and lower prices for consumers, as well as more tailored, personalized experiences.

Open banking works by allowing third-party providers to access a user's financial data with their permission. This data is typically accessed through APIs (Application Programming Interfaces), which are standardized, secure, and transparent ways for different systems to communicate with each other. Once the data has been accessed, third-party providers can use it to create new products and services, such as budgeting tools, comparison platforms, and personalized financial advice.

Yes, open banking is regulated by government and industry bodies in order to ensure that it is secure, transparent, and fair for consumers. These regulations typically include requirements for strong customer authentication, clear consent, and data protection, as well as rules for how third-party providers can access and use financial data.

To access open banking services, you will need to provide your permission for a third-party provider to access your financial data. This typically involves signing up for the provider's service and providing your consent for them to access your data. Once you have given your permission, the provider will be able to access your data and use it to create new products and services for you.