Open Banking Breathes New Life To Personal Finance Management
We are three months into 2021 and the financial world continues to be abuzz with Open Banking and its many possibilities. Leveraging the implications of the opening of banks to Third Party Providers (TPPs) opens up a world of opportunities for banks and financial institutions looking to redefine customer experience (CX) for a digitally charged world. To quote Gartner’s Top Strategic Technology Trends 2021 Report it will be the enriching of the “total experience”, which includes customer and user experience, that will help organizations capitalize on COVID-19 disruptors. This is especially true for banks and financial organizations whose main differentiator is CX.
Personal Finance Management (PFM) is one such use case of Open Banking that brings immense potential for banks seeking to amplify their CX. With the help of digital transformation, banks can now focus more on customer value and experience. The enabled customers need improved facilities to manage their expenses and savings in a better way. For the banks, PFM becomes an essential offering to enhance CX. With the help of Open Banking, PFM can integrate with more than one bank accounts and create a single view of finances in a single interface! This will provide a new lease of life for Personal Finance Management, and better informed decision making for banks.
Not just PFM, but total financial discipline-now possible with Open Banking
Open banking now enables banks to empower customers and cater to their individual needs. By cross-referencing customer account data with other banks under customer consent, f i nancial institutions can harness so much more. From analysing customer spending habits, tracking cash flow to offer intelligent alerts and customized product recommendationsyour bank can transform how customers manage their personal finances in today’s fast paced world!
At Clayfin, our PFM solution has evolved to offer PFM features such as goal-based saving, gives your customers the option to save based on their personal aspirations. Meanwhile, the innovative multi-bank PFM enables customers to check their consolidated net worth, analyse their spends and define budgets-all in a single application and with a few swipes!
With social interactions gaining prominence in banking, we have brought-in innovative features such as social and family banking. Whether it is splitting expenses, sharing memories or tagging friends, your customer’s financial management is now socially relevant as well. Similarly, financial management for the entire family is now possible with a single PFM application. Creating family budgets, saving for shared goals, or delegating regular payments to family members becomes easy.
“Open Banking has made banking truly digital, with ability to integrate data from multiple financial institutions. The customer is in a better position to get a comprehensive view of the customer’s finances and financial institutions can offer services on top of that. All this without compromising on security, confidentiality and with the customer’s explicit consent,” said Rajesh Narasimha, CEO, Clayfin. RBI-licensed Account Aggregators enable secure single view across accounts
In India, the Reserve Bank of India (RBI) has licensed Account Aggregators (AAs) for the secure potability of trusted data between financial service providers with the consent from customers. By facilitating structured financial data sharing from Financial Information Providers (FIPs) to Financial Information Users (FIUs), AAs are certified consent custodians. They perform the all-important functionality of enabling customer enjoy a single view across accounts, while in complete charge!
Speaking on the role of AA’s, Munish Bhatia, Co-Founder, Finvu, said, “Fintechs today are in forefront of digital transformation. I’m glad that we at Finvu have taken the lead in India’s open banking initiative as an Account Aggregator and partnered with Clayfin to offer our state-ofthe-art, world class Account Aggregation infrastructure for their Multi Bank PFM product.” PFM-the catalyst to drive the CX revolution!
It’s an undisputed fact that we are living in an Experience Economy! The digital wave has brought banks and financial institutions into a new and different set of challenges. Banks are transitioning from being mere transactional providers to experience providers. They are quickly and efficiently rising up to meet the challenges of customers wanting experience-driven services, tailored recommendations, built-in social interactions and so on. Leveraging digital tools such as multibank PFM is helping them amplify the CX quotient!