The last decade saw Open Banking revolutionise financial services across Europe. By unlocking access to payment accounts and enabling secure third-party services, Open Banking 1.0 laid the groundwork for a customer-centric, innovative ecosystem. However, the journey is far from over - Open Banking 2.0 is rapidly approaching and promises to go beyond basic account data and payments.
From Open Banking to Open Finance
While Open Banking gave customers control over their banking data, Open Finance aims to extend this control across a broader range of financial products:
- Savings and Investments: Full visibility of pensions, investment portfolios, and savings accounts.
- Insurance: Integrated insurance coverage management.
- Lending and Credit: Automated loan comparison and servicing across providers.
The European Commission’s upcoming Financial Data Access (FIDA) framework is set to make Open Finance a reality. FIDA will regulate access to a wide range of financial data - creating standardisation and ensuring secure, consent-based sharing that empowers consumers and businesses alike.
The Benefits for Stakeholders
Consumers will gain better access to tailored financial products, aggregated views of their finances, and improved decision-making tools, while financial institutions and fintechs will benefit from richer data access that enables them to deliver hyper-personalised offerings. At the same time, regulators and governments will have increased market transparency and more efficient competition.
Malta’s Role in the Open Finance Future
Through platforms like FIMA and forward-looking fintechs, Malta is well-positioned to thrive in this new landscape. FIMA plays a crucial role in connecting stakeholders, shaping regulatory discussions, and ensuring Malta remains a progressive fintech jurisdiction.
FIMA members, including local fintech champions, are already innovating for Open Finance. As regulation catches up with market needs, collaboration will be critical to unlocking the full potential of Open Banking 2.0.
