European Open Banking.
"Tink" is a company that is trying to modernize the baking system across Europe. They have realized that the current banking structure is too small and inflexible to serve the current needs of our generation. With a world wide economy, there needs to be global and European solutions for crossing borders without massive expense to do so.
While we understand that crypto is a better vehicle for doing this. There are companies out there trying to create solutions using the legacy system.
Open banking gives you greater control over your data, gives you the option to securely share your current account information and make payments directly from your current account by using Third Party Providers.
Banks, techfirms, retailers ect...
Open Banking is happening to make the banking industry more competitive and strengthened by new regulations allows for further development. This has seen the rise of new products and services which make managing your finances more straightforward and enable you to save both time and money.
From the “Tink” Website.
The traditional payments landscape is complex and fragmented. Open banking payments are account-to-account, meaning no middlemen or unnecessary fees.
Simple, fast, and low-cost
Open banking lets you initiate direct payments within any service and own your customer journey end-to-end. No fraud, no chargebacks, and none of the usual fees.
Ever-improving conversion
Open banking journeys are improving rapidly across Europe. With zero data entry and fewer redirects, it’s already the most frictionless way to pay online in some countries.
They offer services for banking, lending and payments.
Tink are a third party provider who offer a range of existing bank services using a more modern and flexible open banking system. They are bank agnostic and allow access to hundreds of different banks from one of their accounts. That means that they can operate across all of Europe rather than be based in a single country working in a single market.
Not only can they match the majority of existing bank services but through their digital service they can offer even more than a traditional bank can.
They have partnerships with multiple other fintech companies and can then offer complementary services such as personal financial management, savings plans and reduced processing times as it is a digital product.
Transactions are fast and frictionless across borders and all of this is enabled through the latest regulations brought in by PSD2 to open up a European market. New technology has opened up the banking space to a lot of innovation and with the latest regulations open up a pathway to the big financial institutions across Europe we will see a lot more of these TPP’s bringing new ideas and services to the market.
The company will also offer lending services through their company which is a totally different prospect to the banking sector.
While this will also be reliant on open banking it will run into a full set of regulations that revolve around the lending sector. However as a fintech TPP they can offer a much more modern way to get a loan.
By giving access to the TPP, they can now get a full assessment of your financial status instantly and make decisions from there.
Instant affordability checksReduce loan delinquencyQuick and confident payoutsOptimize the entire loan processPower credit and risk models
"With Tink we have provided our customers with a much smoother way to prove their income and their creditworthiness, which has helped us reduce our application processing time down to less than 10 mins. It has helped us increase our automated funnel which in turn increased approval rates, faster time to money, and reduced risk of fraud and uncompleted applications - all real difference makers for our growth."
Modern banking systems will be a lot more than just a savings account and we can see them moving away from the traditional idea of a place to hold and lend money towards a full financial program with extended life services.
While all of this sounds good, it still has the same inherent problem. Relying on a third party to give you access to funds, loans, savings ect...
There is still the risk of collusion with government bodies, restricted access to services and basically being under the obligation of a company to give you access to your own funds.
So, while all of this is a step in the right direction away from the big banking institutions that currently have all the power. It is only a bridge to people moving into automated, decentralized services where they are the sole custodian of their funds. That is where we will see crypto moving over the next few years and where we need to see it go to.
Posted Using LeoFinance Beta
