Caitlin Sinclair, director of proposition development, financial crime at GIACT, an LSEG business, recently told PYMNTS that open banking can — and will — give rise to empowered consumers, and take the tedium out of online commerce.
We’ve gone from an environment where one carried physical documents (passports and driver’s licenses) to digital copies of those documents stored online. Passwords have been a hallmark for decades but are of course vulnerable to hackers.
At the moment, as digital transactions and interactions are conducted through Web2, identities are somewhat centralized, among larger enterprises, the marquee names of Big Tech and a variety of government agencies.
Open banking, Sinclair said, can help decentralize those identities, in effect creating a “data store” that is stocked with information about individuals and businesses, diversifying the range of data points that can leveraged to verify identities when conducting online commerce.