Technological advancement through the intelligent use of data has paved the way for an evolution in the concept of finance. It has gone from being seen as an end, to a means through which users can achieve their goals.
Finance is a means to achieve an objective, it’s not an end in itself. Therefore, financial institutions need to know their customer in order to offer them the best digital experience; one that is fast, simple and contextual and allows them to accomplish their goals.
These experiences must be designed with people at the heart of the strategy. And Open Finance, which using a secure exchange of data creates predictive services adapted to customer needs, is a tool for lenders operating in the region’s increasingly thriving finance services market.
The adoption of technology in financial services has become far-reaching, making it a reality of the present and not a promise of the future. Therefore, companies operating in the industry are obligated to improve the customer experiences they offer through their different channels. And if they don't, they risk being placed at a disadvantage.
Open Finance for getting to know the customer better
According to a Gartner study in 2022, banking is the industry that invests most in technology to automate processes. In Brazil, one of most advanced countries in this respect, banks have said that the analysis and utilization of data obtained through Open Finance is at the top of their list of technology-related priorities in 2023, according to Deloitte.
Brazil’s financial industry leads the way in implementing Open Finance in Latin America, rolling out architecture that encourages service providers to use API-based, interoperable systems to create new use cases. Today, different payment accounts can be centralized in a single application, and enterprise resource planning (ERP) systems can be connected to banks, which after accessing and analyzing a business’s daily activities, can foresee shortages of capital or gaps in inventory and can proactively offer a credit or investment product as a result.
We are witnessing the beginning of an evolution of Internet banking from which there is no going back. From digital onboarding to conversion and retention, processes will become faster, simpler and more adaptable, thanks to the interconnection and cross-data solutions that Open Finance allows.
Today, the model traverses banks, fintechs and payment systems such as the Brazilian central bank’s Pix platform, which has been recognized by the World Economic Forum (WEF) for its effectiveness in digitalizing money and including more people in the financial system.
In future, it will also cover insurance companies and securities trading, considerably increasing the amount of data that can be mined and giving banks market intelligence on a scale that has never been seen before.
Technology + Finance = key in the user experience
The industry is called upon to compete at a time of major upheaval in financial services. Therefore, it is important to have agile, disruptive developments with a good time-to-market while being sure not to lose sight of the fact that customers are the greatest beneficiaries of this competition.
In such a context, it is important to have solutions that are 100% ready to operate in Open Finance environments and that generate dynamic digital channels, with an emphasis on mobile platforms.
It is important to note that, in Latin America, mobile payment solutions and electronic wallets remain consumers’ preferred means of transaction, the Inter-American Development Bank (IDB) said in 2022.
With that in mind, these are some of the advantages of using financial technology:
- Efficiency and speed in processes.
- Optimization of operations.
- Integration and updating of data in real time.
- Strategic decision making and solutions
Within the evolving framework of open finance, there are currently two related concepts that are considered the pillars of its implementation:
- The consent panel for clients.
- The financial aggregator, which is responsible for centralizing banking information in a single place.
Both elements can be integrated into the digital financial solution preferred by users in the region —as we have seen, it is the wallet —in order to take advantage of its virtues and convenience.
At Veritran, the technological leader for the development of digital business solutions, we are perfecting that wallet of the future, through a solution that integrates the most important pillars and functionalities for commercial expansion. Multi-country, multi-language, multi-currency, and multi-profile, it is completely customizable to the needs of both the service provider and the end user, regardless of age, interests, financial profile, work or accessibility preferences.
We believe the experience is outstanding from the outset. Therefore, our digital identity and incorporation is global, multichannel, modular, with real-time responses, compliance control and traceability.
We provide a solution with multiple experiences. This is the motto that has driven us to create a leading platform for wallets that can be adapted to all segments and become vehicles for materializing people's dreams.
Click here to read exclusive material about how Veritran is ready to meet the future of Open Finance in Brazil with its Business Solutions.
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