The role of open banking in shaping the future of digital payments

Lasma Kuhtarska, Co-founder and Chief Strategy Officer at Noda, discusses how Noda’s innovative open banking platform is transforming online payments and empowering businesses with data-driven insights.

Can you briefly explain what Noda’s Open Banking platform offers and how it differentiates from other open banking solutions in the market?

Mainly, Noda helps merchants accept online payments via Open Banking. Such payments are cheaper than traditional card payments, they are protected from chargebacks, and payments success rates are usually higher.

We also go a step further. Our financial data analytics tools, like Know Your Whales (KYW), use Open Banking APIs to gain insights about customers. Merchants can use this information to increase engagement and improve customer acquisition.

Could you share some examples of how businesses have successfully transformed financial data into insights using Noda’s platform?

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Of course! One of our clients is a gaming publisher, which uses to identify which new players are most and least likely to have high lifetime value based on their financial patterns. That’s in their exact game at the moment when a player has just registered. 

Relying on that parameter, the game tailors personalised offers in the in-game shop, engagement mechanics, and notifications to each player. This has led to a significant upside in ARPU (Average Revenue Per User).

What are the best practices for using Noda’s KYW tool to create personalised customer experiences? How can businesses use Noda’s platform to enhance customer segmentation?

Personalised experience totally depends on the business industry and understanding how financial data insights of users can be linked to the products offered. 

The simplest example of segmentation is categorisation of users by wealth category. Knowing that, plus understanding the best timings for ads targeting, businesses can make marketing campaigns more effective.

For example, e-commerce companies can target ads for specific products based on a user’s wealth category, and at the most opportune moment for effective targeting.

With the growing importance of data security, how does Noda ensure the privacy and security of financial data?

Know your Whales is operating sensitive financial data of end-users. The EU and UK regulations are very strict regarding users’ personal data, so before we analyse or even access any data, we first ask for the user’s consent.

As a regulated financial institution, Noda takes data security very seriously and implements all necessary cybersecurity measures to protect financial information.

How do you see the future of open banking evolving, especially in terms of data-driven insights?

Data is the today’s oil. We are confident that open banking data possiblities will evolve, and the data sharing will become more simple and more standardised. At the same time, GDPR regulation will evolve as well, so we should take care of both aspects.

What advice would you give to a business that is just starting to explore the use of open banking data? Give at least three practical tips.

Implementing users’ financial data might seem like something complicated and not obvious, but that’s not the case. The first tip is don’t hesitate to try. Contact our Noda team and we will try to help you design potential use cases.

Take care of financial user data and the legal aspects. Discuss with our team all potential opportunities and limitations/

Experiment with engagement and acquisition mechanics based on the financial insights. Nobody know which crazy idea will bring highest results, so try everything!

Lasma Kuhtarska provides a comprehensive overview of how Noda‘s open banking platform not only facilitates seamless and cost-effective online payments but also enables businesses to leverage financial data for personalised customer experiences and improved acquisition strategies. With an eye on the future, Lasma highlights the growing role of data in shaping open banking and encourages businesses to explore its transformative potential.

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