In American Banker Penny Crosman considers Mastercard’s recent announcement of the acquisition of Finicity and Visa’s acquisition of Plaid; if...
Mastercard and JP Morgan have partnered to bring open banking payments to billpaying. This is just the first development from the partnership.
Progress in open banking regulation will advance financial inclusion in Latin America, and prompt fintechs to forge alliances.
There is no standard for data sharing between banks and fintechs which often results in screen scraping; this leads to concerns around data security and is also an inefficient way to gather data; the Financial Services Information Sharing and Analysis Center released an updated version of their recommendations around data sharing called the Durable Data API specification; this could eventually become the standard adopted by the industry; American Banker compares this to PSD2 in the UK and shares more about the new specification. Source
ICBA selects first fintechs for new accelerator program Partnerships, UX improvements and speed will drive money transfer in 2019 Brexit...
TrueLayer is currently in public beta testing for their new open banking payments service they bill as a breakthrough for...
According to a new study by Accenture 7 out of 10 consumers would be reluctant to share their Information with third party providers; Citi recently published a study pointing to three main reasons that wide scale adoption will take longer; reasons include slow consumer adoption, fragmented market for new open banking services and the ability for payment providers to adapt to new rules; thus far open banking has been slow but big banks like Lloyds Banking Group and RBS have made big tech investments anticipating the change will happen over time. 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.
Former FDIC Chair Sheila Bair writes in the FT that in light of the recent hack to Equifax should regulators be providing more entry points to customer data; she goes on to explain past bank hacks are typically done using a third party who has gained access to a customer’s data; other key points include can these service providers cover potential losses and are regulators forcing service providers into the most secure process. Source.
According to a report by Which almost 92 percent of consumers have not heard of open banking; slow adoption by banks is one reason for the low numbers; another reason is many people have started to use non bank services for payments or other tasks, the term open banking is still relatively new; banks are starting to innovate, by building or partnering, and open banking will only help to push innovation forward. Source.