While the number of users benefiting from Open Banking continues to increase worldwide, there is a divergence between the concept of Open Banking and Open Finance – at least according to Salt Edge.
Salt Edge is an open banking platform that provides services interested in benefiting from the concept of data control and sharing in the financial services sector. Based in the UK, Salt Edge is expanding its reach to other countries, including North America.
Salt Edge believes that Open Banking is a foundational technology and Open Finance is the goal. Open Finance moves beyond banking to the broader world of financial services and beyond.
To quote Salt Edge:
“Open Finance data refers to a variety of data that includes account balances, transactions, savings accounts, pension data, and more, and is accessible and usable by multiple parties within a larger financial ecosystem.
With more data available, Open Finance is expected to inspire the emergence of new use cases, supporting the development of fresh and improved products and services that meet the changing needs of consumers.”
The pursuit of Open Finance is predicted to foster new and novel services that benefit the financial existence of both consumers and businesses.
Salt Edge reports that currently, there are 43 countries in various stages of implementing Open Finance regulations.
Statista has stated that the number of Open Banking users worldwide will grow by an average of 50% per year between 2020 and 2024, with 12.2 million users in Europe in 2020. Salt Edge states that in 2024, the number of open banking users will be around 64 million, 70% more than predicted.
