The Data Download: Open banking and pricing your privacy
Sent by Joshua Katris | February 18, 2024
The Good
As open banking matures, we are beginning to see a significant shift in how financial data is shared and used. This promises to transform the landscape of financial services and how they compete. Most notably, this means that you, the customer, will be more involved in the decision-making process.
An analysis by Forrester found that even a 1-point increase in the CX Index score can yield an additional $123 million in revenue for large multichannel banks.
The Bad
Open banking is exciting, but with it comes a gauntlet of challenges. Open banking builds a dependency on third parties, which means that a customer's data is shared with more partners. More partners means an increased risk of data breaches and misuse of personal information.
The Ugly
As privacy becomes more of a concern we will begin to see an increase in privacy-for-profit products and tools. Last year, Meta introduced a program to address EU regulatory obligations. Users in the EU have the option to continue using the free versions of the company's platforms and continue to be tracked or pay a fee and be excluded.
Something to think about
You’ve probably heard that “freedom isn’t free.” This may be true in some areas of life, but should it also apply to our digital experience?
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