Open Banking is a financial service where customers can disclose their banking data to third parties of their choosing, giving them the freedom and control over their data. What do these changes really mean to the average person? Or, rather, to someone who is trying to save his or her small business?
Since making a drastic sweep across the globe, COVID-19 has created instability and crippled economies world wide. Naturally, this means that those who fend for themselves day by day—small businesses and blue-collar workers—are one of the many who have been hit the hardest. In these challenging pandemic times, small businesses are struggling to stay afloat, and the struggles compound when trying to apply for a loan.
Oliver Wyman’s article “Open Data is Essential for Small Business Recovery” explains how Open Banking can accelerate small business recovery post the COVD-19 pandemic. This article provides an in-depth explanation of how the Open Banking ecosystem can positively impact consumers and lenders alike. There are clear applications of how Open Banking can help small businesses make a turnaround for the better.
Adatree’s CEO, Jill Berry, contributes to the article with more detail about the transformation that the industry will undergo with Open Banking. Berry illustrates use case scenarios, such as what happens when a small business owner applies for a loan with an accredited data recipient (ADR) lender and how that lender can monitor the owner’s finances in case of red flags. She also goes on to explain how ADR applicants should prepare themselves for and how Adatree can help those applicants in their journey through entering the CDR economy.
Read the full article here: Open Data is Essential for Small Business Recovery