When we talk about Open Finance, we are talking about something that is much bigger than just software implementation. An “Open” approach doesn’t just mean a different way to build a platform, more it represents a completely different way of thinking. It means embracing better ideas from open minded people and the collaboration of smart companies, so smart ideas are not monopolised and are shared
Open Finance is innovation that is at the core of many expanding companies and forms part of their strategic planning. Smart companies plan their innovation according to an “open approach”, with the most modern and recent platforms excelling thanks to the collaboration of different actors (including customers!) and sharing the journey with universities, other fintech, consultancy firms, etc.
We really think there is no other way to proceed today.
A regulatory framework is necessary
Open Finance is not an easy journey and will not happen as a “big bang”, it will evolve. Open Finance is a revolution, but it will take time to establish and there are still lots of issues that need to be addressed; data ethics is one of the most important.
Phrases such as “informed consumer consent” are very common, but to allow to fully adopt the Open Finance concept the setting of a regulatory framework is fundamental. In this way, all the implications of data sharing should be carefully understood and properly managed to avoid disadvantaging weaker groups of the population.
The 4C principals
With a focus on the opportunities and threats, we would suggest starting with the creation of a new and innovative Open Platform following, what we call, the 4C principles:
- Communication: new platforms must be natively API based, designed to easily communicate with heterogenous ecosystems
- Cloud: new platforms must be available on Cloud with the objective to minimise efforts and dramatically reduce time-to-market
- Collaboration: platform design, roadmap and other aspects must be carefully analysed by the company and market experts in strict collaboration with external teams too (business savvy people, university professors and so on)
- Customer: since the beginning you should be obsessed by customer benefits and an incremental approach to comply with regulatory constraints (and their evolution)
We know it will be a long journey; we will be back soon to talk much more about this soon and share our ideas.
About ObjectWay
Founded in 1990, Objectway Group is a leading provider of investment management and digital software solutions to the worldwide financial services industry. Our omni-channel, omni-device software platform supports the rapidly advancing digital revolution within the wealth and investment management segment.
Under the direction of CEO and founder Luigi Marciano, Objectway has seen steady growth since its inception, both organically and through strategic acquisitions, with revenues topping 60 million euros in fiscal year 2015. Our awarding-winning platform is the trusted choice of leading wealth and investment firms across the globe from EMEA to Canada to Central America.
From offices in Italy, Belgium, the UK, Ireland and South Africa, Objectway's roughly 500 employees support more than 100,000 investment professionals in 15 countries, who manage more than one trillion euros in wealth. For more than 25 years, we've kept our focus on a single vision: combining advanced technology with a deep understanding of business needs to help our clients reshape their wealth management services.
