Examining the Potential Impact of Open Banking on Gambling Industry Security Standards

Technological progress is pushing various industries forward quickly. When it comes to iGaming, the adoption of smartphones has become the primary driver that allowed gambling platforms to grow quickly. However, there are still processes that need to be faster, more secure and more practical to keep the industry growing.

The biggest improvements come down to payment methods. While finding an online platform with the best payouts, as in the guide by Wagering Advisors, is easy. Not all of them are up to date with modern payment systems. While some brands are using Open Banking, it has still not become mainstream. In this article, you’ll find some benefits of Open Banking and how it can help transform the iGaming industry. They are:

• KYC and AML Improvements
• Secure Transactions
• Service Quality
• Responsible Gaming
• Transaction Speed

KYC and AML Improvements

Know-your-customer and anti-money laundering can both be improved to make the whole gambling world a safer place. Advanced know-your-customer policies allow businesses to detect potential fraudsters. With Open Banking in place, identifying these individuals would become much easier.

That’s why some of the biggest casino brands in the UK have already started using Open Banking systems. It brings transparency to a whole new level, preventing any kind of illegal activity from occurring.

Secure Transactions, Always

Security has become great with online gambling platforms. Unfortunately, there are still two points that make users’ private data vulnerable. These are man-in-the-middle attacks and gambling platform security breaches.

The man-in-the-middle attack is dangerous. Even though your connection with an online casino is encrypted, if you’re using an unprotected public connection, someone still might acquire your personal information. That’s why typing passwords and making payments on such networks isn’t safe.

On the other hand, even though the majority of these platforms use top-notch security protocols to keep your data safe, a security breach can always happen.

Open banking eliminates these risks as your payments become seamless. You pre-authorise the platform to execute transactions. Even if someone were to gain access to your account, they can’t do anything with your funds, as you can only make deposits and withdrawals to your bank account. It’s simply the safest way of making a transaction.

As such, this payment method is highly secure, and it helps gambling platforms to more easily reach the latest security regulations required. But most importantly, it more easily builds trust between players and online casinos. That’s the biggest obstacle that users have with brands nowadays.

Better Services

Open banking also gives more insight into customer behavior as all the payments are processed on the platform. That way, gambling companies can create custom experiences for their users. They can tailor specific promotions for players of the most popular slots. Or prepare special gifts for table game lovers.

Additionally, companies can create better VIP and Loyalty programs. That allows them to better cater to their users’ spending habits.

Responsible Gaming Automation

When it comes to fair play and player protection, Open Banking brings a lot of benefits to the table. Companies offering gambling services can meet and even exceed responsible gambling requirements. Similarly to tailoring the abovementioned unique experiences, online casinos can establish spending limits. It’s easier to place systems in place that would protect the player from developing addiction and overspending.

That would make online gambling platforms fairer. It would help the player establish spending limits automatically. As time goes by, it would make the gambling industry even better. The brands would be able to show how much they care about the customers’ wellbeings.

Instant Transactions

Last but not least, one of the criteria by which users rate gambling platforms is the payout speed. Users want to have their money in their bank account within minutes. While popular cryptocurrencies can make this possible, they are not regulated in all countries. E-wallets are not fast enough, but Open Banking makes this possible. After the user provides all the necessary documentation, both deposits and withdrawals become instant.

Conclusion

As you can tell, the Open Banking protocol will likely become a standard feature of online casinos. The security benefits and its practicality make it a must. As stricter regulations come into place, we’ll see more companies adopting Open Banking. It will provide a more secure and overall better experience for all online casino players. Let’s just hope that integrating Open Banking will be easy enough so all the platforms can do it.

If that turns out to be true, the online casino world will become fraud-free.