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Real-World Experiences: A Roadmap for Choosing a Data Partner

June 8, 2022 | 0 min read

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Real-world experiences are worth their weight in gold when creating an Open Banking or Open Finance roadmap. Today, Patrick Spencer, Managing Director at Moneytree Software, and Sipho Simela, Founder and CEO of Matrix Rental Solutions, shared their experiences with utilizing data and choosing a data aggregation partner. 

Why Data Aggregation is Important

Financial plans can only be as good as the data they're based on, according to MoneyTree Software, which provides financial planning software to over 3,400 advisors across the country. Being able to collect and organize financial data enables both companies and consumers to get more value from data — ultimately, enabling better financial outcomes for the consumer and business results for the organization. 

That value can also mean a broader picture of a consumer’s finances, as in the case of Matrix Rental Solutions, which is laser-focused on how data impacts housing decisions (particularly in the rental housing space). Access to real-time data can help consumers get into houses faster. For instance, today's tenant screening process doesn't tell the whole financial story for the 44 million renters in the United States. 

Data aggregation supports more open access to financial data, which provides an incredible opportunity for both consumers and businesses. For consumers, it means more context to make better decisions and improve financial outcomes. For businesses, it provides opportunities to uncover new revenue streams, deliver better customer experiences, and drive innovation.  

What Capabilities Matter Most

Choosing the right data partner looks different for each financial institution and fintech. Patrick and Sipho share their list of key capabilities to support their journey: 

  • Connectivity: Consumers need to be able to easily connect multiple financial accounts in a secure way that protects them and promotes trust. 
  • Data Breadth: The more data coming in from across accounts, the less the consumer has to do manually, such as emailing copies of account statements. 
  • Data Accuracy: While the data's breadth is essential, knowing that data is cleansed and ready for application is vital to creating personalized solutions for consumers.
  • Customer Service: What does a vendor's customer support look like when issues arise? Is there a clear line of communication that will enable fast solutions? When problems occur, remember that the consumer will be going to your organization for answers, not the data aggregator. Companies need a partnership that turns a problem into an opportunity for building loyalty.

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For even more details on what to look for in a data partner, check out MX’s Request for Information starter kit for other financial institutions and fintechs about to embark on a search for an open banking data partner

A Future of Open Finance

Both Moneytree Software and Matrix Rental Solutions shared their experience with how Open Banking and Open Finance have enabled innovative solutions for their respective consumers, whether through financial planning or renting. Check out Evaluating Open Banking Partners to watch the full replay of the webinar.

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