Ahead of the Canadian open banking panel discussion at Mobey Day Toronto, STACK’s Chief Product Officer Ranjit Sarai shares his thoughts on fintech perspective.
What does open banking mean for the industry?
Open banking is based on the concept that each individual should be the owner of her own data instead of the model we have today which is banks own your data. By building an infrastructure where banks can securely provide access to your data, consumers are free to chose which financial institution they want to work with. In the long term, this will be a net positive for the industry. It means transparency in data, in business models and in the way banks deal with consumers – everything that STACK advocates for on a daily basis.
How do you see open banking impact fintechs like STACK?
We built STACK to be a customer champion in financial services since day one. The value proposition of STACK is compelling but a barrier for consumers has been that their financial life is already spread across a few financial institutions. Traditional banks count on the fact that it is painful and a hassle to move over a bank relationship from one bank to another and so customers tend not to switch. Open banking for us means that the playing field will level. We know customer are frustrated with their banks and we feel that when you give consumers a real choice they will more often that not opt for change.