As financial institutions weigh their options in making information available through APIs, control and consent over this information becomes critical. Empowering customers to conduct financial transactions and consent to data sharing within their financial institutions and beyond must happen with appropriate levels of security and trust to ensure that personal information is protected..
IDENTOS enables trusted digital connectivity for the financial sector with globally referenced access control software that connects dynamic digital identities and open APIs, while remaining secure, trusted and contextually relevant over time.
Financial institutions face a unique set of challenges when it comes to digital transformation. While they are already innovating in many respects, they struggle with the overwhelming task of connecting multiple lines of business within their own institutions. They recognize the need to enable improved customer workflows and minimize touch points and barriers for new service onboarding, while also adhering to compliance with investment industry regulations regarding privacy and user consent for sharing.
IDENTOS can support the scaling of a trusted digital ecosystem that includes trusted services beyond the institution. Financial service companies can extend the security and strength of existing KYC processes while creating new avenues of service monetization; all while building customer loyalty and retention with rapid onboarding of connected and trusted third parties such as complimentary insurance and lending services, budgeting tools, robo-investing apps and more.
Open Banking is a disruptive open-API based business and technology paradigm that is rapidly transforming the financial service sectors of many major industrialized nations. The majority of these initiatives have appeared over the last two years and have been led by countries such as the UK, Japan, Australia, and groups within Europe and Latin America. While these countries have brought in regulation to support the fostering of open bank APIs from regulated organizations, the US and Canada are still evaluating options and are yet to follow suit.
The Canadian government recently opted for the introduction of the term Consumer Directed Finance, to describe a more user-centric model for financial service interaction based on open APIs. While financial institutions have been experimenting with the capability to expose APIs at their discretion and with selective partners, IDENTOS’ perspective is that such initiatives can flourish and ultimately become complementary to Open Banking / Consumer Directed Finance. Immediate needs for consented data access can enable organizations to capitalize on opportunities to modernize workflows around their customers, expand the capability for monetization with trusted partners, and establish the framework for regulated open banking approaches.