Open banking allows us to share our financial data withauthorized third parties in exchange for a service. This data includes things like transaction history, account balances, and payment details. By opening up this data, the financial system is enabling third-party developers to create new products and services that can help consumers better manage their finances.
Big data is a term used to describe the large and complex datasets that are now being generated by our digital world. This data can come from a variety of sources, including social media, sensors, and transactions. Big data is often analyzed using artificial intelligence (AI) and machine learning (ML) techniques to uncover hidden patterns and insights.
Big data is playing a big role in the fintech industry, powering many of the new open banking products and services. By analyzing transaction data, fintech companies are able to provide insights and recommendations that can help people save money, make better financial decisions, and avoid financial scams.
Using big data in fintech allows companies to create new propositions that were unimaginable a couple of years ago. This is driving a new wave of innovation in the financial sector, which is benefiting consumers and businesses alike.
For businesses, leveraging open banking means being able to serve their customers in a more personalized way and cut operational costs.
Obviously the usage of big data can also cause concerns. Data has to be used in a safe and non-abusive way. What's most important is that companies using big data do so with the main goal of better serving the user. Offering an excellent service can’t be done without the highest privacy and data protection standards.
The good news is that the introduction of technology is democratizing finances. As businesses can offer more innovative products and services, consumers have access to a wider range of affordable options. We can expect even more exciting developments in fintech in the coming years, and as Fizen we're happy to be part of it.