BANKING
" Since open banking was originally introduced in the form of regulation , the focus of these regulated regions has understandably been on compliance ; as a result , open banking has often been painted as a compliance exercise ," said Eyal Sivan , Head of Open Banking at Axway . " However , two things are changing : first , regulated players are looking to generate a return on their initial investments ; and second , marketdriven regions are beginning to adopt open banking in the absence of regulation . These two factors will fundamentally shift the focus of open banking over the next year , from regulatory compliance to the generation of real value ."
What is the purpose of open banking ? The overall goal of open banking is twofold . First , it ' s intended to increase competition and innovation in the banking sector by giving fintechs , and other providers access to the data of bank customers . Second , it ' s designed to improve customer experience by allowing customers to understand their finances better and more easily compare products .
“ OPEN BANKING IS SMART PUBLIC POLICY . IT HAS CONTRIBUTED TO THE UK BECOMING A LEADER IN BANK INNOVATION AND SUCCESSFUL FINTECH INNOVATION ”
BILL VERHELLE FOUNDER AND CEO OF QUICKFI
It ' s worth noting that open banking is not a new concept – it ' s been around in various forms for years . However , the launch of
PSD2 ( the Revised Payment Services Directive ) in January 2018 marked a significant milestone , as it made open banking mandatory for banks in Europe .
Many other jurisdictions are also in the process of implementing open banking , and there ' s no doubt that it will eventually become a global standard .
" The CFPB ' s recent moves prove that open banking is slowly but surely maturing in the US ," said Vanni Parmeggiani , Director , Open Banking & Real-Time Payments at GoCardless . " As regulators continue pushing in this direction , we expect that 2022 could be the year of the great bank opening — especially as the difference in pace between the US and other countries becomes more obvious ."