The Euro Banking Association is calling for the financial industry to collaborate in order to accelerate digital innovation and data exchange standards in the B2B space
The EBA’s Open Banking Working Group (OBWG) published its latest thought leadership paper on “B2B Data Sharing: digital consent management as a driver for data opportunities.” Now that Open Banking is in full works, the paper calls for financial institutions to work together to reap the benefits.
The paper revealed how data sharing among banks and other service providers can help to increase efficiencies, lower risks and contribute to service innovation.
Vincent Brennan, head of group operations and payments at Bank of Ireland, and chair of the EBA’s Open Banking Working Group, stated: “Our analysis confirms that in order to truly drive innovative data propositions, digital consent management and a standardisation of data exchange are required.
“This will support secure and controlled accessibility of data at scale and with explicit consent given by the data owners, enabling banks and other service providers to address the emerging needs of business customers.
“While this may be achieved by individual banks, there is also an opportunity for industry collaboration as the set-up of digital consent management and the exchange of data requires trusted relationships amongst multiple parties.”
The rise of B2B exchange platforms has driven competition in the market, and in an Open Banking world, third parties are embracing the opportunities by using data more effectively for analytics and value creation.
The paper also looked at the importance of data consent. Now with GDPR live, companies will have to receive transparent consent from consumers.
Having more access to valuable data will allow banks to:
- Improve the efficiency of financing and risk processes contributing to the financial bottom line;
- Provide more tailored services to customers;
- Reduce cost to serve business segments, e.g. long tail of SMEs, opening up additional markets;
- Pursue data-driven propositions as part of an Open Banking strategy to strengthen the relationship with business clients.
The new paper is part of a series of publications on Open Banking that the OBWG of the Euro Banking Association (EBA) has delivered over the past two years.
The group is composed of 45 practitioners from 29 banks and other providers across Europe.