Useful open banking use cases – guide from TrueLayer

Wednesday, November 11, 2020

Marking three years of open banking in Europe, TrueLayer’s handy guide outlines both proven and emerging use cases.

Much of the report focuses on proven cases – drawn from TrueLayer’s own API calls – split into three categories:

  • Using open banking for smart onboarding offers a big step forward in customer experience. The report also points out the advantages for regulated sectors, and the added benefits of having verified income and affordability data.
  • Personal financial management use cases include financial dashboards (aggregation), smart budgeting and auto-saving.
  • For SMEs, use cases again include aggregation and affordability checks, along with accounts automation.

For emerging use cases, the report looks first at data insights – and the potential for personalisation with services such as loyalty/rewards – before going on to address instant payments. TrueLayer’s own data shows dramatic growth in this during lockdown, surely a trend that’s set to continue. Both account funding (for wealth management and other services) and one-off payments are covered.

Finally, the report points out the power of combining use cases and the extra potential as we move towards open finance, before finishing with a nod towards embedded finance.

In such a fast-moving market, it is perhaps inevitable that a guide like this will date quickly. On the day of review alone, the UK’s OBIE starting a consultation on recurring payments and sweeping, and FDX took a step forward with US tax accounts standardisation.

That said, the report offers a useful snapshot of the state of play and a helpful framework for thinking about use cases – along with a good selection of the fintechs that are helping open banking start to fulfil its promise. Well worth reading it soon!

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