Does open finance risk apply if it's not your core business? A guide for technology service providers

Open finance data and payments increasingly flow through platforms that weren't originally designed with open finance risk in mind – and if a technology service provider's platform is part of that chain, it's part of the risk management question, regardless of whether connectivity is the primary business or one capability among several.

Two things determine whether this applies to a given platform:

1. Whether open finance data or payments pass through the platform at all: Core banking platforms, payment processors, credit union service organizations, and developer infrastructure providers can all sit in the chain even when open finance isn't what they're primarily built or sold to do.
2. Whether the question has been asked yet, not whether it will be: Financial institution clients may not be raising this directly today, but regulators are – and those questions eventually reach every provider in the chain, whether or not open finance is their core product.

Providers that build the answer into their proposition now, before being asked, are better positioned than those that wait for a financial institution or a regulator to raise it for them.

About Invela

Invela is the infrastructure layer that makes open finance trustworthy – accrediting who's in the network, monitoring risk in real time, and ensuring liability lands in the right place. Open finance, covered.