Banks have historically been the guardians of customer information, but that has started to change with open banking; opening up information to third parties via customers has led banks to think more and more about security breaches; Now it’s not just about building a wall and not letting anyone in,” said Ram Bose, global retail banking consulting leader at Genpact, to TearSheet. “It’s about building a filter or strainer that lets some things in or out and not other things.”; the UK has regulations that mandate the sharing of info but the US has only set out standards and banks have been doing one off deals; new technologies like AI and machine learning can help to better secure agreements when banks are working with 20 or more potential partners; it is early days but banks can help to set up the standards they use by working together with fintechs and regulators. Source.
Skinner shares some of the headlines by mainstream media as Open Banking officially launched in the UK; many were negative and included how consumers should fear the changes; not surprisingly the fintech community are strong advocates of Open Banking; Skinner shares his perspective on these two sides battling, the mainstream banks and mainstream media, and the fintech community and more niche media. Source
Open banking is around the corner in the UK and recently the CFPB released guidelines on data sharing that has banks concerned about cybersecurity; Kathryn Petralia, chief operating officer of the online lender Kabbage believes banks and Fintechs should be held to the same standard regarding data; concerns over data include responsibility on data breaches, encryption and entry points for hackers; as data sharing becomes the norm both banks and fintechs will need to protect themselves at many levels. Source.