The impact of COVID-19 will amplify the application of open banking in Sweden and other markets, as can be seen by the new partnership between Resurs and Nordic API Gateway, according to GlobalData, a leading data and analytics company.
Open banking adoption and understanding can be expected to increase significantly over the next year as the consequences of COVID-19 shape behaviors and lives long-term. Increased social distancing and preference for online methods of shopping and purchasing will see a rise in customers who use open banking platforms due to them being able to complete transactions online without divulging sensitive payment information, thereby reducing the risk of fraud. This give the likes of Resurs a new-found competitive advantage that can be leveraged to increase its customer base and more dynamically challenge incumbent banks.
Muhammed Hasan, Retail Banking Analyst at GlobalData, comments: “Open banking developments have aimed to reform how banks handle customer financial data and primarily aim to allow users to share their financial data with third-party providers of their choice. This enables them to access innovative new services and analytics that offer more comprehensive, secure and personalized elements of service.
“The partnership makes sense for Resurs, as GlobalData’s 2020 Financial Services Consumer Survey found that the Swedish market is one of the most receptive to open banking reforms in the world, trailing the likes of Singapore and Malaysia but leading London, despite it being the fintech hub of Europe.
“Furthermore, it will allow Resurs to access financial data and account-to-account payments for any of its 6.2 million customers in the Nordic region who choose to opt in and make use of the service. Resurs intends to use such data to offer tailor-made loan products to customers, which will be based on a real-time understanding of customer financial behavior.”