Open banking, which has been implemented in the U.K., involves sharing customers' financial information electronically and securely, but only under conditions that customers approve.
Open banking forces lenders to offer a digital "fire hose" of data that any third party can use to get standardised access — provided the startup is registered with the UK Financial Conduct Authority (FCA) and the customer agrees to share their data.
This system has already taken root in the U.K., but it could soon spread to the rest of the world. That's why Business Insider Intelligence has put together a report called Open Banking 101: How Financial Institutions Can Take Advantage of a Global Movement to Collaborate with Partners and Developers.See the rest of the story at Business InsiderSee Also:THE RISE OF BANKING-AS-A-SERVICE: The most innovative banks are taking advantage of disruption by inventing a new revenue stream — here's how incumbents can follow suitSilicon Valley cybersecurity company FireEye has hired Goldman Sachs for a potential sale, sources sayThe week that rocked online trading: everything we know about brokers' rapid-fire moves to slash commissions
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