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Open banking: know what it is and what its advantages

It is no longer new the possibility of doing banking through the smartphone or computer, technological convenience interconnected to open banking.

Do not know what that means? Financial Group explains.

What is open banking?

What is open banking?

Open banking is the feasibility of creating new digital features through integration with bank APIs .

API? What is it?

API is the abbreviation in Portuguese of Programming Interface of Applications, it is through this protocol that the camera of your smartphone can connect to some application of photography, for example.

But what does one have to do with the other?

But what does one have to do with the other?

Simply, with APIs developed by banks multiply the alternatives of doing business. In an open network, other companies could connect to banks’ websites and applications to create more practical features.

With this, it would be possible to have all your bank details synchronized with your favorite financial control application, track your expenses on the card and checking account, in short, have in the palm of your hands the exact control of your finances.

How can this relationship be advantageous?

How can this relationship be advantageous?

One of the clear advantages is the convenience of synchronizing bank data with financial applications, avoiding the need to enter passwords and security codes continuously.

Thus, the process of making purchases on the internet will be much faster.

With open banking the client has more freedom and control of his money, being able to carry out banking portability, much less bureaucratic, when dissatisfied with the service offered.

The client chooses the most attractive means of managing his money, all through a single application: he can have a checking account at a bank, but take a personal loan with a fintech that he thinks has more attractive prices.

In this scenario, credit offers are likely to be much more interesting to consumers, with interest rates and more affordable services.

What did you think of this trend? Leave it in the comments.

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