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Why Open banking is disrupting traditional finance and creating opportunities for everyone

Integrated, invisible, seamless. This is the promise of Open banking. Dive into the full insights from Open banking expert Leandro Pupe Nóbrega. Listen now to Shine: a podcast by Star. 

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Open banking is reshaping not only the financial services industry but the world at large. It is a key driver for FinTechs, facilitating access to data that’s enabled them to create breakthrough offerings such as aggregation platforms, neobanks, buy now, pay later programs and others. 

Open banking is so much more than a buzzword in the world of digital finance right now. That’s why our host Tom Hunt sat down with Leandro Pupe Nóbrega, LatAm Product Operations Leader at Belvo, the leading Open banking platform in Latin America. 

In this special episode, we go deep on finance’s most important topics. Understand Open banking and what it means for finance and see the bigger picture of how we harness data in this podcast

Open banking: the start of a revolution

Securely sharing data between financial institutions is a win both for banks and consumers. In addition, it provides the foundation for various technologies across personal finance, wealthtech, payments, real estate and much more.

Monavate, for example, uses Open banking technology to enable their payment solutions, including card issuing ones. And here’s the best part — we’re truly only at the beginning of what this technology can do.

Saving time, reducing friction

Open banking has transformed financial experiences. Leandro and many of us have had this exact experience with neobanks and found how easy it is to set up an account “with just the click of the button.” This helps banks acquire customers more quickly while giving consumers more flexibility in whom they work with. 

Above all, it centers on improving user experience. Instead of cutting a check and waiting a few weeks for it to clear, you can use a FinTech tool to aggregate your finances and pay your bills in just a few seconds. 

This is “promoting innovation and pushing the whole industry forward” while helping customers gain better access to financial tools and education to make more sound decisions. One exciting example we can all relate to — real estate. Rather than guess if you have enough money to purchase a house, how much all the associated fees and taxes would cost, etc., you can use Open banking-based technology to simulate the entire transaction and help a person right then and there make whether that purchase makes sense for them or not. 

Dig deeper into Open banking. Check out this article from Liza Veretennikova, FinTech Product Manager at Star.

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What’s most exciting Open banking: more time and more freedom

Have you ever wondered what is it like to buy a car in Brazil? Probably not. But it’s quite similar to everywhere else in the world. It requires multiple visits both to dealerships and government offices and is very time-consuming. With Open banking and secure information sharing, you can make all of this a thing of the past. Open banking’s greatest strength is the time and friction that it saves.

People can focus not on something mundane like waiting in lines or on hold but on being creative and spending time on things that add value to their lives.

Providing services to the unbanked and beyond

Simultaneously, neobanks and other new forms of digital finance have opened a world of opportunities to those traditionally marginalized by the system. Think of investment platforms, for example. Millions of people now have access directly to the stock market thanks to tools like Robinhood and WealthSimple

Combined with time-saving and other benefits, Open banking is truly transformative. And it doesn’t just apply to the financial sector. Or take another example of an ongoing partnership between an open banking provider and a Brazillian resort. Here the family could hire life insurance for that date and have the extra coverage in case a mishap occurs during a boating adventure, for example. 

Then, of course, there is personal finance management. You can see all your money coming into one place, where it’s going, invest and manage accordingly. So whether you look at it directly or indirectly, Open banking has vast potential.

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