Most people would agree that we are on the verge of a significant transformation in the global economy, driven by advances in data and analytics. [..] I believe, though, that as we move into an Open Data world, combined with much better data and analytics capabilities, humans will be able to step back from many of these routine tasks. An algorithm that understands your preferences will be able to narrow the choices down into a manageable set of options for your review – and with service providers sharing data (with your permission) behind the scenes, they will be able to coordinate to provide you, for example, a handful of holiday options where your flights, rental car, accommodation, and insurance all match up automatically.
So, in the short term, Open Banking will spur innovation and heightened competition as banks and fintechs compete to provide new insights to customers with their data, and as customers shop around for the most competitive offers. But in the long run, it won’t just spur additional competition – it will create an entirely new set of business models and change the nature of industry competition, as banks and others are judged by their ability to work together to provide better business outcomes.
How ‘Open Data’ will tip us towards task-free era by Jamie Twiss