OPEN BANKING IS ONE OF THE MOST IMPORTANT , DISRUPTIVE TRENDS TO HAVE HIT THE GLOBAL FINANCIAL INDUSTRY . WE TRACK ITS BIRTH AND GROWTH IN EUROPE

PAYMENT SERVICES DIRECTIVE IS LAUNCHED

By 2007 , the European Commission devised the first Payments Services Directive – called PSD1 . The aim was to stimulate competition in the financial industry , enhance the quality of services provided and to protect the end user . The move led to a new industry category – namely , payment services , which featured new regulations enabling non-banks to carry out transactions and growth in the sector .

RECESSION AND THE BANKING RESET

By 2011 , the UK ’ s Midata initiative was announced , which was a government initiative that enabled British customers to download their current account transaction data and put it into online tools to increase bank switching . The scheme was backed by RBS and Visa , officially rolled out in 2015 with the aim to “ change personal banking forever ”.

APIs AND FINANCIAL FREEDOM

Today , Open Banking has transformed the global transactional space within retail . Innovative APIs have resulted in far more frictionless relationships between banks , vendors and customers as automated solutions enable non-banking entities to offer similar products and services . Open Banking also has the potential to reduce cyber attacks , fraud and result in a streamlined financial payments system . fintechmagazine . com 17