Insurance Business ReviewSEPTEMBER 20258IN MY OPINIONHOW OPEN INSURANCE CAN LEARN FROM OPEN BANKINGBy Stefan Stignas, Head of Customer Journey Management, SEBYou might be familiar with the expression "Open Banking". Open banking is sometimes also called "Open Bank Data". It's a banking practice that provides third-party financial service providers open access to consumer banking information like AC balance data and transaction data. It all started by the decision from the European Parliament's decision "Payment Service Directive" (PSD2) in 2015. That directive set the technical standard of what data should be able to retrieve through Application Programming Interfaces (APIs). The PSD2 directive has been somewhat copied to most parts of the world today even if the EU GDPR legislation doesn't come in to play in other geographies than EU.So, what have we learnt so far is that hundreds of start-ups have been trying to outperform incumbent banks with new "hyped" apps and value props but with mixed success. We have learned that a few HUBs have been very successful in establishing a standard for how to aggregate and categorize the customer data and then sell that data back to banks and other interested buyers. I am talking about companies like TINK or AIIA here.But we have also learnt that the PSD2 APIs alone are not good enough to create a competitive enough product to compete with the banks. Screen scraping is still used in same cases as a result of that.This is a sigh of relief for banks, which felt themselves to be in the firing line and extremely challenged, five years ago.Today we can see more and more banks developing so called "Premium APIs" where anyone can retrieve more and better data given two conditions:
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