Financial technology & SMEs financing
The Open Banking initiative was launched to help level the advantage that established banks have over challenger banks in terms of the amount of customer data they hold. Jonny explains how Open Banking intends to solve this problem by providing examples with a focus on small and medium-sized enterprises.
The Open Banking initiative was launched to help level the advantage that established banks have over challenger banks in terms of the amount of customer data they hold. Jonny explains how Open Banking intends to solve this problem by providing examples with a focus on small and medium-sized enterprises.
7 mins 47 secs
Open banking challenges the monopolistic behaviour of banks by ensuring more information and data is given to customers. It allows them to gain access to finance with ease due to the higher concentration in the market, overall providing a better experience than traditional banking.
Key learning objectives:
Explain the initial problem with established banks and the Open Banking Initiative to combat it
Discuss how Credit and Price decisions are made
The key metrics Underwriters use when reviewing customer data.
Explain the measures that are in place to ensure equity in markets.