Open banking is enabling consumers and the businesses they do business with to adapt amid uncertainty, says Alex Gonthier, founder and CEO of Trustly, in a new PYMNTS e-book, “The Implications of Uncertainty.” I am writing inside.
The economy is still feeling the aftermath of the pandemic, which has completely disrupted the way we live and work. The outbreak of war in Europe and the Middle East is also causing inflation, unrest, and uncertainty about the future. I don’t remember any other time in my life where so much change happened in such a short period of time. In the United States, consumers have changed their physical locations, shopping habits, and spending patterns, leaving businesses second-guessing who they work with and what their customers need. Against this new backdrop, the assumptions we were working with five years ago now seem almost meaningless.
As the world moves online at an accelerating pace, old payment habits have also changed. For example, most consumers have moved from paying their bills on their bank’s site/app, which was the center of their financial lives, to paying directly on their biller’s site/app. The advent of open banking is further facilitating a shift of power to consumers and the companies they want to work with. Businesses can now establish new connections with customers and leverage banking data such as income and spending activity. The resulting cash flow provides businesses with better insights and actionable information to adjust their strategies for today’s consumers in real time.
The companies we work with are always looking for ways to add value to their customer base. New consumer insights revealed through open banking data will help businesses create better loyalty programs and offer tailored incentives to increase satisfaction, retention, and reduce churn. Helpful. Not only will businesses benefit from better, more up-to-date consumer data, but consumers will also benefit from deals and incentives tailored to their needs.
Separately, new advances in artificial intelligence (AI) are allowing fraudsters to step up their attacks in more sophisticated ways, compromising merchant databases and committing large-scale fraud. I did. To mitigate these risks and address the lack of consumer identity verification, account verification, and fraud prevention, Trustly’s proprietary risk engine leverages advanced data science and machine learning to identify potential risks. Identify and optimize the decision-making process for consumer accounts. Additionally, our technology extends the already powerful set of identification tools used by banks, creating two layers of protection and data security. This makes Open Banking payments, which are built on online banking data, more convenient and secure than many other payment options, allowing them to authorize more transactions and cost less than cards, for example. Through open banking, businesses can anticipate and effectively respond to the uncertainty created by fraud risk, minimizing disruption and maximizing opportunities for growth.
With open banking at the core of our approach, we are actively shaping the future of financial services and putting bank accounts back at the center of people’s financial lives. Trustly provides businesses with a simple and secure approach to connecting with customers through open banking, and our innovative solutions are a new wave of customer relationship management that will help businesses navigate the uncertainties ahead. is at the forefront of
