Open Banking - Data, Analytics and the Tragedy of the Commons - ERP Spain.com - España y América Latina

The tragedy of the commons, first described by biologist Garrett Hardin in 1968, describes how shared resources are overused and eventually depleted. He compared shared resources to a common grazing pasture; in this scenario, everyone with rights to the pasture acting in self-interest for the greatest short-term personal gain depletes the resource until it is no longer viable. The banking ecosystem and the data that binds it together is not all that different. For many years, through miss-selling scandals, cookie cutter products and dumb mass-marketing have seen players acting in their own interest in accordance to what they believe the ecosystem should look like, how it should evolve and who controls it. But with the introduction of open banking, there are signs that new banking ecosystems are set to thrive. Taking Hardin’s notion, collaboration in the open banking future could benefit everyone in the ecosystem – the traditional banks, the FinTechs, the tech titans with their expertise in delivering services at scale, and yet-to-be-defined participants, likely to include the large data players such as energy firms, retailers and telcos. Join me to explore the Open Future.