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Open banking is a phenomenon that’s captivating the minds and thoughts of data analysts, commentators, consultants, and the general public. So far much of the benefits of sharing data with third-parties, concerns over data privacy and information related to technology and electronic security have been heard of.
Analysts are interested in obtaining processed information which helps them in decision-making. When a customer has transaction information and elementary product and pricing knowledge, the relationship manager at the bank sells the customer products and, in return, he gets a higher sales commission. Most of the customers find it complicated to compare the product and pricing across the banks, and they give up midway. The customer expects the Third Party Provider (TPP) to provide simple and meaningful information on a user-friendly front end. For example, the TPP must notify the customer about getting the best ROI and lowest price on their overdrafts. The customer must be able to define his goals, both short and long-term. The consequential outcome must suggest him on spending pattern, and likewise, a saving pattern is made.
TPP has the responsibility to meet the requirements of a customer who sanctions the sharing of account information. Taking a look at the data assets possessed by TPP helps in understanding, to meet such expectations. There are three different datasets. First is the essential data transaction made by the customer, which is genuine and accurate. Second are the final products and services followed by pricing information. This, itself is a strong base for analytics. The customer adds the related personal information and selects a suitable demographic profile to set goals. The final requirement is a predictive ‘what if’ scenario contingent on data assets and customer information. The entire procedure is reflective of Personal Financial Management (PFM) tool.