Fintech
Digital Ecosystems at FinServ: Insights from Raidiam CEO Barry O’Donohoe
Digital Ecosystems: Driving Innovation
Despite the economic benefits, digital ecosystems have played a critical role in changing the way consumers access and use their financial data.
“We have seen innovations such as niche products for people with special needs (e.g. dementia), as the ability to access, share and use data on a consensual basis allows such products to be created and managed appropriately to protect the customer from any form of financial abuse,” Barry notes.
“Another significant innovation we have seen in the UK is HMRC becoming the first tax authority in the world to integrate Open Banking into its systems.
“They now offer the ability to pay a tax bill directly from your bank account with reference information pre-populated and securely shared with your account provider, reducing the risk of errors and making it a viable, easier and faster way to pay than using a credit or debit card.”
The entire banking sector has seen significant investments following the PSD2 regulation.
This modernization is necessary to future-proof financial institutions’ digital channel technology and service infrastructure across Web, Mobile and APIs. Investments in technology have provided customers with more modern digital experiences to manage their financial lives, while making the industry more secure and cyber resilient.
Modern digital channels have brought benefits to third-party providers by enabling new, innovative customer propositions and have also helped banks serve their direct customers more effectively.
That’s why, Barry says, “for a company, the innovations brought by having a digital ecosystem are multiple and, frankly, endless.”
“For example, providing improved customer service by making it easier for customers to onboard, find and access the services they need from those offered and benefit from reduced form filling.
“From an internal perspective, companies can gain full visibility and management of all their services in one place to increase operational efficiency and identify cost savings.
“We are seeing exciting new use cases emerge, from introducing a simpler and easier home buying experience to holistic management and access to volunteering and social care services. Digital ecosystems are truly the foundation for innovation in every area of life.”