The Impact of Open Banking on Online Casino Payment Security
Open banking uses open APIs (Application Program Interfaces) to enable third-party developers to build applications around financial institutions. This way, an account owner doesn’t need to visit in person whenever they want to release funds for a service or product they receive online. But what implications do such transactions have on online casino payment security? Let’s find out!
Impact of Open Banking on Online Casino Payment Security
Faster Identity Verification
Casinos are required to verify the identity of each customer. Open banking can help to make this process faster, as they do not have to ask the customer to provide any details. They can access the bank’s database and determine whether they will need to ask for additional data to verify who the prospect is. And they won’t have to in most cases, as financial institutions always do their due diligence when registering their customers. No one will risk providing fake documents to a bank. Not that they even stand a chance of going through, no matter how authentic they might look.
Faster Withdrawal Times for Customers
With open banking, the customer’s account is more of an open book. Certain details are concealed, of course, but the openness often works in the customer’s favor by enabling faster transactions. That is because there is no need for the bank or the casino’s finance department to hold funds in security for too long. On the operator’s part, funds are usually released to the customer’s bank account instantly after the request.
A good example is depositing funds at a casino with $5 minimum deposit to try out games without digging deep into your pockets. With Open Banking technology, you only need to enter your bank details and the amount you want to deposit. Funds will be deducted from your bank and credited to your casino balance almost instantly.
Enhanced Safety For Users
Open banking reduces the risk of losing personal data. The required information is entered directly on-site without emailing or messaging the operator back and forth, which can be risky and time-consuming. After gaining access, operators can then scrutinize financial data, eliminating the need to request users to send statements or payslips. Payments to and from the casino can also be completed upon request.
Customers should always be keen about the information they are providing. The last thing you want is to provide banking details of any kind to a phishing website. Reading the terms is also important so that you know whether there is a means to revoke access to your information, especially when you want to cut ties with a certain operator.
Preventing Problem Gambling
One of the requirements for online casinos is that they must be advocates for responsible gambling. Open banking is one of the tools they use to monitor a customer’s gambling behavior to determine whether it is healthy. If it isn’t, they can reach out and offer help, such as guiding them on how to use self-help tools, and deposit caps, for example. There’s also a gambling block, which allows customers to temporarily or permanently restrict transactions to online casinos.
Money Laundering Prevention
For operators, cases of customers who want to set up an account to launder money are not new. Open banking comes in handy in preventing such situations, though. This is because the customer’s transaction history can easily be accessed. And money laundering accounts are easy to identify and flag, as the source of the funds is always illegitimate. Furthermore, banks can monitor the customer’s transaction behavior to determine whether they aim to enjoy games or conceal the origins of money obtained illegally.
Improvement of the Customer Experience
Open banking provides an easy way for customers to move funds in and out of the gambling website. Most importantly, they have the peace of mind of knowing that their safety is guaranteed. This way, they can spend more time trying out popular games such as slots, poker, craps, and blackjack at the casino rather than worrying about how they are going to withdraw their funds.
Conclusion
Open banking is here to make it easier for players, especially first-timers, to deposit and play at the casino. However, operators must ensure they comply with all relevant data protection and privacy regulations, such as the General Data Protection Regulation (GDPR) in the European Union. In addition, they should utilize proven security measures such as the latest encryption technologies and firewalls to protect the data entrusted to them by customers. Audits should also be done regularly to ensure that there are no leaks.
