As open banking services expand and consumers change the way they view and use their financial information, the financial landscape of the financial service will change dramatically. As a result, regulators, financial institutions, and Fintex have all been working to create a network of innovative, security, competitive, and so-called CPD.

“There is always danger, and it will never happen, but as an industry it is our job. [and for] Supervisors and legislators to make sure we always keep consumers in the middle. ” Nick Thomas, Chief Product Officer b End He spoke to PYMNTS. ”[As a consumer]It is being used for the purpose you are looking for and your control over your data. [permission] For that benefit. “

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Quick view to data collection

According to Thomas, data collection may seem timely, but since the mid-1990s, the problem has been solved by the use of composite data and screens.

Since then, financial creators have called for that information to be consistent and easily accessible, prompting the inclusion of Section 1033 of the Dod-Frank Act, which underscores the need for consumers to control and access their data from financial institutions. It clarifies concerns about data ownership and consumer rights, and provides digital access to this data. The industry has since returned to normal. Today, more than 22 million consumers access FDX (Financial Data Exchange) Application Programming Interface (API) for open banking services.

As always, there are many hurdles in the industry, says Thomas. Data Collection enables private financial management (PFM) tools, their banking data, and ACH payments to enable businesses that support their finances, and many other issues.

According to Thomas, the university is one of the major players in the field of open banking, credit decision-making and cash flow management and screening of income, assets and employment.

“These innovations will only continue to expand the scope of open banking and utilization issues,” he said.

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Data fuel innovations permitted for consumers in Fintech

For decades, banks have been using PDF statements to write on credit. The difference is that it is now digital. “The simplicity of accessing the data to the lender and the ease of access or delivery or digital permission have reduced the time to write and close. [which improves accuracy, speed and the ability to more readily ingest and analyze the data,]”Said Thomas.

One example is a quick loan. The company wanted to significantly reduce the time it takes to improve and write customer experience and reduce it to about 10 days [shorter] Time than the industry average. The opening of the University Bank has been a key part of the boring and lengthy digital verification process from days to minutes or seconds, Thomas said.

This change significantly reduces the error rate. Thomas explains that every time a paper has to be translated into a computer, there are risks involved. Finicity improves the efficiency of the lender by reducing the amount of downtime by shortening the time it takes for the lender to repay the information directly from the source – usually from the bank – and digitally.

The digital nature of the information also increases security. Thomas explains that it is safer to access the data digitally because you are verifying access with a username, password, multi-factor authentication and permanent authentication by the account holder. On the other hand, sharing documents, e-mails, etc. is inherently dangerous.

“In the digitalization of the whole ecosystem, everything is to avoid that conflict,” Thomas said. “There are still some processes stuck in Legacy mode but those that are not stuck in Legacy mode are completely digital and the user experience is much better.”

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Moving to a normal level

The University is involved in the creation of financial data exchanges with the aim of creating a common standard for access to information from banks and financial institutions. Thomas believes that API standards, agreement management, and consumer data rights are part of the puzzle that the industry needs to increase user control over how the information is used and for authorized purposes.

According to Thomas, there are two basic ways to address this concern. In many markets, this regulation is governed by regulatory bodies. This has led to a quick fix on the allowed levels, because they are ordered. However, the industry-leading approach, the current US model, allows for a broader ecosystem to come up with different perspectives to address opportunities and challenges for secure information sharing. On this front, FDX is extremely fast.

“We have this amazing industry-oriented company that is not only fast-paced to change and get consumers’ information. There are people who work every day, and this is the force that is working in the industry,” Thomas said.

Open Bank is the next data collection frequency. In addition, four components are being assembled at the same time – digital identity, consumer information rights, regulation around 1033 and blockchain technology.

Thomas believes we will see these four technical galaxies come together in the vast digital world over the next three years.

The level of creativity and inclusion that is taking place in the United States, let alone the world, is heartbreaking and exciting.

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