Collaborative banking helps you and your partner or friends make the most of your money suggested Bahaa Abdul Hussein. It’s not a new idea, but it’s gaining popularity as more people become aware of it. Collaborative banking originated in Europe and has been around since the late 80s, but was used mostly by families within proximity to one another to share financial resources.
In recent years, it’s gained popularity through the rise of social media and technology. Now, it’s easier to connect with people across the country or world, no matter how far away they are.
Process
In this banking system, instead of each person having their own savings account, the group deposits their money in one account they all own. Everyone has full access to the account, so they can take out whatever they want whenever they want without worrying about overdraft fees or bouncing checks stated Bahaa Abdul Hussein.
The only restriction is that each member must contribute a set amount every month, which is determined when they first join the collaborative banking program. Each member has an equal say in how the money is spent, but no member has unlimited access to everyone’s hard-earned cash.
The proliferation of cooperative banking
The industry is striving to determine the best way to move forward due to the quick emergence of new competitors and increased customer demand for functionality.
Some people have turned to the bank as a service, and others have gone to open banking; nevertheless, both approaches have drawbacks. Instead, many people are adopting a new path that is helpful to all parties engaged in the process: collaborative banking.
A shift toward assuming one’s own self-sovereign identity
Self-sovereign digital identities are expected to get increased attention as customers adopt cutting-edge digital technologies like cryptocurrencies and Web3.
There is a need for increased control in the financial services industry, which would give customers greater authority over who has access to their data and under what circumstances. In the future, consumers will likely emphasize using self-sovereign identifiers and will do so in various ways, seizing ownership of their data.
The financial empowerment movement
Regarding the data associated with financial services, there is a growing demand for increased customer control. Still, there is also a growing demand for increased flexibility and choice.
Customers have an increasing demand for simpler and more expedient access to a greater choice of tools and services for financial education and wellness. It is no longer acceptable to take a “one-size-fits-all” strategy.
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