Scan the QR code to download Dobin!
The last few years have seen a shake up in how people bank all over the world.
Think about it! When was the last time you queued up in a bank to check your account balance? When did you last receive a cheque, or pay someone back by making a cash withdrawal?
Now, everything you need to do with your money can be done online or in an app. You can pay for groceries by tapping your phone, and split the dinner bill by paying off your share with PayNow. You can use Dobin to check your balances, and monitor your investment portfolio through SGFinDex. You might even get an e-hongbao this upcoming Lunar new year!
From virtual red envelopes to viewing your live transaction data in an app, this new way of banking relies on one important new technology: open banking.
In this article, Dobin will delve into the fundamentals of open finance and open banking, covering everything you need to know to make the most of this new wave of financial technology.
So, first things first, what exactly is open banking?
In a nutshell, open banking is a system that allows you to share your financial data, securely of course, with authorized third-party providers using an API (Application Programming Interface). This means giving permission to your bank to ‘open’ your data up and allow companies like Dobin to view and use it to give you a product or service via an API ‘bridge’.
Open banking is all about giving you, the bank account holder, ultimate control and flexibility over your financial information. With open banking, you can easily access and integrate all your accounts from various banks and financial institutions in one centralized hub, and benefit from great products and services that help you reduce the time you spend on managing your money, making saving, spending, and investing easier and simpler.
Ultimately, open banking fosters innovation, competition, and empowers you to make smarter and more informed decisions about your money.
Open finance takes the principles of open banking and kicks it up a notch, bringing in a whole new level of financial freedom and possibilities.
Open finance goes beyond just sharing banking data; it's about unleashing the true potential of decentralized finance (DeFi) where anyone, anywhere can access a wide range of financial services without any middlemen or gatekeepers (like the traditional banks).
Dobin uses elements of open banking and open finance to work. Firstly, open banking allows you to connect your bank accounts and transaction data to the Dobin app so you can view an up-to-date snapshot of your finances in the Dobin dashboard. Then, Dobin uses this data to find you the best financial products for your situation — using open finance.
Both open banking and open finance (and the Dobin app for that matter!) rely on nifty pieces of technology called APIs.
An API, which stands for Application Programming Interface, is a bit of technology that allows different software applications to talk to each other and share information. Think bridges that enable smooth communication between various systems, making it easier for them to work together seamlessly.
APIs define the rules and protocols for how these interactions should happen, so developers can access specific functionalities or data from a service without having to understand the nitty-gritty details of its internal workings, or do anything with the data.
Here at Dobin, we like to think of an API as a waiter taking your order at a restaurant and passing it along to the kitchen – you provide information (your order) to the waiter (the API), who then passes it on to the kitchen (the third party financial service provider).
APIs play a crucial role in enabling integration, enabling apps to tap into services, and making our digital world run smoothly.
So far so good! We’ve learned what open banking and open finance are, and the basics of how they work. But what’s in it for you?
Well, there are a whole range of benefits for you as a consumer when you adopt this new technology. Let’s take a look at them here.
Open finance and open banking are revolutionizing how we manage our money, and creating a whole load of new products and services in the process.
With open banking, you have the power to consolidate all your financial data from different
banks and institutions in one place,
giving rise to financial planning and finance management expense tracker
apps like Dobin.
This easy access to your financial information makes it a breeze to budget, plan, and strategize like a financial pro.
Now, let's talk about the money-saving prowess of open finance. With the decentralized revolution of open finance, you gain access to a plethora of innovative financial products that can optimize your financial journey.
With everything from finding better merchant offers, clarity in your everyday spending, open finance, and Dobin, can help you save money and get the best rates.
When it comes to borrowing and lending, open finance platforms provide more competitive rates and flexible terms compared to conventional banks. Whether you need a loan or want to earn interest on your savings balances, open finance options can lead to substantial savings in interest payments or increased earnings.
Plus, all this is offered to you in record time. Say goodbye to tedious internet research and lengthy bank queues — open banking consolidates all your financial data in one place, like the Dobin personal finance dashboard. And the best part? All of this is available right on your phone. You're in control of your finances, making informed decisions when it suits you best!
Instead of dealing with the bureaucracy and hurdles of traditional financial institutions, open banking puts the power back into your hands. No more multitasking multiple bank apps just to get a clear picture of your finances! This accessibility saves you time and stress, giving you more freedom to focus on what matters most.
But the real magic happens when open finance steps onto the stage, opening the doors to a whole new world of financial opportunities, ensuring that no one is left behind. No discrimination, no exclusions – everyone can now participate in decentralized lending, borrowing, and trading, even if you don't have access to traditional banking facilities.
For the unbanked and underbanked populations here in Southeast Asia, open finance acts as a lifeline. With just a smartphone and an internet connection, individuals who were once excluded from financial services can now tap into a range of open finance options. This newfound access empowers them to build credit, borrow money, and plan for their financial futures.
Open finance also bridges the gap for those in remote or underserved areas. Physical branch locations are no longer barriers to accessing financial products and services. With open finance, geographical boundaries are blurred, and people from all walks of life can participate in a global financial ecosystem.
Finally, open banking and open finance are technologies that help keep your data safe and secure, and puts you in control.
Gone are the days when you had to hand over all your sensitive information to various financial institutions, not knowing what they will use it for or where they will keep it. Open banking lets you decide who gets access to your data and for how long.
Plus, by using an app like Dobin, you have real-time visibility into your financial activities, meaning you can quickly spot any suspicious transactions and get it sorted straight away. With greater awareness and control, you can promptly respond to potential threats and take necessary actions to safeguard your money.
Open banking and open finance are here to stay, and a whopping 85% of banking customers here in Singapore agree — regarding open finance as a ‘must have’ for banking institutions. The banking industry is changing, and now’s a fantastic time to start taking advantage of the whole new range of products and services on offer.
And the first step to taking control of your finances using open banking and open finance? It’s got to be downloading the Dobin app. Dobin is your go-to open finance partner for gaining a clear grasp of your current financial status, discovering the perfect financial products that suit you best, and unlocking fantastic savings through personalised discounts and rewards.
Streamlining financial management through the latest technology is Dobin's mission. With Dobin and open finance on your side, you gain the knowledge and tools to make well-informed decisions, tailored to your unique circumstances. Best of all, the app is available completely for free, making it accessible to everyone in Singapore.
Harness the power of Dobin and open finance today, and download the app here.
Related Blogs
