OpenBanking – what do I mean by that term…
Since I seem to be one of the main people using the term of #OpenBank (at least in MY echochamber) so I feel l like I should define this hashtag publicly. (Also note I have registered myopenbank.com and will be raising investment funds shortly so I have like vested interests and such.)
When I say OPEN I am going a bit further than just “Transparent.” Things can be transparent without being Accessible. (See this blog post for an enlightening example 😉
I admit I am a huge fan of “show me the raw data.” And I often tell Government wonks – stop worrying about interpreting the data just release it RAW and we will work with it. To be honest, I don’t want them interpreting it. Rarely does the government employee have the same motivations as the individual citizen. Therefore cannot do an appropriate interpretation without biases showing. Their interpretations will be subjected to their odd internal metrics which are too abstracted from the public. (see post on Govt metric issues.)
So what am I trying to achieve with #OpenBank? I want an open and accountable bank.
I see this as a 6 step process. I am going to only talk about 3 steps here. ( The other three are kinda out there and I have noticed many of my ideas need 3-5yrs marinate time before anyone else doesn’t think they are nuts so I am holding off… maybe in a month or two)
So the 3 steps I created 2.5 almost 3 yrs ago are…
1) The new #OpenBank will
a) be completely transparent to its customer about all data gathers on the customer.
b) will acknowledge the Mutual ownership of data btn the bank and customer
c) create equitable contracts in regards to the accrual and usage of that data hereby creating equanimity and trust.
2) The new #OpenBank will be transparent about the Bank’s data and status and will release all FDIC data to the public. It will foster a community of stakeholders to openly interpret the data like freerisk.org but with special support.
3) It will create internal mentoring communities that eventually will help with the loaning process. There is a reason kiva.org has a 95% return rate. The special mentorship Nonprofits are key. They know the individuals, the community, the conditions etc. They are motivated to make sure the customers can repay the loan. There are no levels of abstraction that allowed the previous trading of mortgages that resulted in fraud. We can bring that back to banking on a large scale.
So that’s the first part of my plan… whacha think?