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5 Stages of Open Finance: Unlocking the Power of Financial Data

May 11, 2022 | 20min read

Open Finance means that companies, financial and otherwise, can build and offer solutions that help them understand and manage their financial lives better. MX defines Open Finance as the availability for everyone to access and act on financial data. 

  • Financial institutions can collaborate with various providers to deliver a wider variety of services to their customers based on consumer data.
  • FinTechs and other third parties gain a broader and more accurate basis upon which to create consumer-centered financial technologies outside of the financial institution.
  • Consumers have more choice and control over the data they share and how they engage with their finances — and gain unparalleled access to a broader range of products and services.

Yet today’s financial services industry remains largely closed. It does not support secure and reliable data sharing. The average consumer has at least 5-7 different financial accounts across multiple providers. And, according to the Consumer Financial Protection Bureau, financial providers can only access 10-20% of a consumer’s financial picture. This closed ecosystem is a problem and as an industry, we can do better.

Open Finance breaks down this closed ecosystem and unlocks the value of financial data. How ready is your organization to embrace the future of Open Finance? Take the MX Open Finance Readiness Assessment to help you identify where your organization falls on its journey.

You can also learn more about how MX powers the Open Finance Economy by watching our MX Product Form replay. We are building the largest open finance ecosystem to help drive innovation and improve experiences with the most trusted and reliable open finance APIs.