Unlocking Value in Fintech: Consumer-Permissioned Data & Open Finance

In the rapidly evolving financial technology (fintech) landscape, open finance has emerged as a game-changer, empowering consumers with unprecedented control over their financial data and enabling a new era of personalized and innovative financial services. At the heart of open finance lies consumer-permissioned data, which plays a crucial role in unlocking its transformative potential.

What is Consumer-Permissioned Data?

Consumer-permissioned data refers to financial data that individuals explicitly authorize third-party service providers to access and utilize. This data can include transaction history, account balances, spending patterns, and other relevant financial information. By granting permission, consumers empower fintech companies and financial institutions to develop tailored products and services that meet their specific needs and preferences.

Benefits of Consumer-Permissioned Data in Open Finance

1. Enhanced Personalization:

Consumer-permissioned data enables fintechs to gain a comprehensive understanding of individual financial profiles, preferences, and risk appetite. By leveraging this data, they can offer highly personalized recommendations, tailored interest rates, and customized financial products that cater to each customer's unique circumstances.

2. Improved Financial Health:

Access to consumer-permissioned data allows fintechs to provide proactive budgeting tools, credit monitoring services, and financial planning assistance. These tools empower individuals to make informed financial decisions, improve their creditworthiness, and achieve their financial goals.

3. Reduced Costs and Increased Efficiency:

By eliminating the need for manual data entry and reducing the reliance on costly third-party data providers, open finance with consumer-permissioned data streamlines financial processes and lowers operational costs for both fintechs and consumers.

4. Increased Innovation:

Consumer-permissioned data fuels innovation in the fintech industry by enabling the development of new products and services that leverage data insights. This data-driven approach fosters competition and drives down the cost of financial services.

5. Improved Credit Access:

By providing alternative data sources, consumer-permissioned data expands the pool of eligible borrowers and improves access to credit for underserved populations. Fintechs can use this data to assess risk more accurately and offer loans to individuals who may have previously been excluded from traditional lending institutions.

Smile API: Provider Consumer-Permissioned Data Today

Smile API plays a crucial role in enabling Open Finance by empowering individuals with access to their own data. By practicing the principle of Open Finance, Smile API serves as a bridge between individuals and their financial goals. The company believes that access to one's own data is a basic right and is essential for financial inclusion. More data leads to more information, which reduces risk, lowers interest rates, and increases value for workers and society as a whole. This approach helps to improve the quality of life and ensures livelihood, especially for those who are often excluded from traditional financial services.

Key Takeaways

  • Consumer-permissioned data is essential for unlocking the full potential of open finance.

  • It empowers consumers with control over their financial data and enables the development of personalized and innovative financial services.

  • Open finance with consumer-permissioned data enhances personalization, improves financial health, reduces costs, fosters innovation, and expands credit access.


  • What is the difference between consumer-permissioned data and open banking? Open banking is a specific type of open finance that focuses on sharing data between banks and third-party service providers. Consumer-permissioned data, on the other hand, covers a broader range of financial data and can be shared with a wider variety of service providers.

  • How can I protect my consumer-permissioned data? Fintechs and financial institutions are legally bound to protect consumer-permissioned data and implement robust security measures to ensure its confidentiality and prevent unauthorized access or misuse.

  • Will I lose control over my financial data if I grant permission? No, consumer-permissioned data is only shared with third-party service providers that you explicitly authorize. You maintain full control over your data and can revoke permission at any time.


Consumer-permissioned data is the driving force behind open finance, empowering consumers and unlocking unprecedented opportunities for financial innovation and inclusion. By embracing this data-driven approach, fintechs and financial institutions can create personalized and accessible financial services that cater to the unique needs of every individual.

To learn more about how consumer-permissioned data is revolutionizing open finance and to see how Smile API works, visit our website at https://www.getsmileapi.com or follow our blog at https://blog.getsmileapi.com. You can also book a call with us at https://www.getsmileapi.com/en/book-a-call-with-smile-api to schedule a consultation and discuss how our solutions can benefit your organization.