WHAT IS OPEN BANKING

Open banking and platform banking these are terms that are used in the industry and they refer to something completely different from what we've been discussing in Neo banks open Banking and platform banking are not the same right but there's a there's also the word called Shadow banking so if we talk about open banking is means none Banks accessing data from customers bank accounts that's what the whole area of open banking is where uh third-party providers or other companies using their data of people's bank accounts and integrating that data into their platforms right that open banking.

Whereas platform banking now it is generally referred to as what we're speaking about to some degree earlier where banks are integrating the services from other providers Okay so if we were to distinguish what there's banking as a bank as a service is open Banking and there's platform banking as a service think of it as the passport or exporting or banking products and services to non-banks so your supermarkets are using offering credit cards and supermarkets are offering a bank account that's really banking as a service that's a manifestation of banking as a service right this software is now being passported to a non-bank then you have what we call or we just discussed right now your open banking is about non-banks a benefiting from the data of banks right.

So an unbank using the bank's data on particular customers right so you know in terms of the payments instead of you know you know the kind of shopping habits and so on and so forth it depends, of course, it's gdpr and all this like confidentiality and stuff but there are certain things that they can't access day-to-day they can access with permission of course and then there's platform banking is more about Banks themselves integrating other services from fintech generally right so they can offer new types of services different features on traditional banking platforms.

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