Article: The future of payments: An open future for finance

Money, Open Governance

The future of payments: An open future for finance

The push from open banking toward the more encompassing approach of open finance is being driven by several elements, from consumer pressure to regulatory obligations to greater awareness around privacy concerns. However, there is by no means a unanimous approach to open banking, and certain players believe that we are at different stages of completion on the open banking roadmap.

Over the last decade we have seen that regulatory requirements are increasing, especially in the areas of privacy, payment services, and financial reporting. A more agile, nimble, proactive approach by regulators has been seen against this backdrop, does this equate to innovative supervision, or simply more regulations?

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Article: Mastercard Report Finds UK and Nordics Lead Open Banking in Europe

Money, Open Governance

Mastercard Report Finds UK and Nordics Lead Open Banking in Europe

According to a new report by Mastercard, which conducted in-depth research into how prepared European countries are to embrace the open banking ecosystem, the Nordic countries have been crowned best placed to take advantage of it, together with the UK.

Open banking is fast becoming a worldwide phenomenon. It empowers consumers and businesses to take control of their financial data and their financial futures while stimulating competition and innovation among financial service providers. The report – ‘Open Banking Readiness Index: The Future of Open Banking in Europe’ – found the Nordics’ and UK’s digital infrastructures ensure the countries are very well-placed to allow widespread use of this concept.

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Article: Open Finance: The Key To Innovation Across The Financial Ecosystem

Money, Open Governance

Open Finance: The Key To Innovation Across The Financial Ecosystem

The banking sector has seen huge levels of change over the last decade and is now increasingly driven by growing demands for digital services and a customer base that is more prepared than ever to shop around. In 2020 alone, for example, over 700,000 people switched their current account from one bank to another in the search for better deals and services.

The widespread emphasis on customer experience has reshaped the way services across the economy are offered, with consumers using the likes of Amazon and Netflix as a benchmark for other digital brands – banks included. As a result, challengers in the form of Monzo, Starling and Revolut, among others have attracted millions of customers with app-based experiences that are positioned as the antithesis of “traditional” banking, instead putting the customer at the heart of the banking experience.

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Article: Powering new banking business models with open banking platforms

Money, Open Governance

Powering new banking business models with open banking platforms

While the concept of Open Banking has been around for some years, the industry mostly espoused it for the sake of regulatory compliance. However, in the wake of the pandemic, there has been a definitive and rapid uptake of open banking approaches and adoption globally. For instance, in Covid’s devastating aftermath, many beleaguered borrowers – especially small businesses and individuals – have found the Open Banking ecosystem to be an easier source of credit.

By authorizing their banks and various other institutions to share their data with third-party providers in real-time, the borrowers are able to tap a wider supply of credit on more favorable terms. And this is just one of the many forces driving the accelerated adoption of Open Banking that has made it a key transformational lever of our world today.

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Article: The benefits of serverless for the banking and financial services industry

Money, Open Governance

The benefits of serverless for the banking and financial services industry

The financial services industry, like many industries, is currently undergoing a radical shift. In addition to the change to all-digital transactions, customers have come to expect comprehensive services that are able to meet their needs when, where and how they want them. In order to keep up with rapidly changing customer demands and remain compliant with industry regulations, financial services organizations must have the right IT infrastructure and processes in place.

And, as cloud-native—and more specifically, Kubernetes-native—development techniques continue to become the norm, the way developers at financial institutions work must also change, to a cloud-first approach. More and more, implementing a serverless architecture is what makes sense for financial organizations as they continue to transform their focus more on customer demands than IT infrastructure.

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Article: Opening up banking: the emergence of open banking ecosystems

Money, Open Governance

Opening up banking: the emergence of open banking ecosystems

Modern banking is characterized by fierce competition from fintechs, technology giants and changing customer expectations. Banks are increasingly leveraging technology to modernize themselves and deliver personalized, convenient, and comprehensive products and services to customers.

As such, open banking models are gaining momentum and will most likely be the norm for the sector in the years to come. In fact, studies indicate that open banking users are expected to increase from 18 million in 2019 to 40 million in 2021. The ongoing pandemic is also contributing to the growing acceptance of open banking as end users seek better insights into their overall financial health.

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Article: Digital is driving open concepts in several industries

Money, Open Governance, Open Health, Procedures (Medical)

Digital is driving open concepts in several industries

The concept of open office has transformed much of the work life. This was driven primarily by the desire to improve collaboration, efficiency and effectiveness. In the context of a rapidly evolving digital platform, similar impetus for collaboration is shaping some of the underlying industries of the US economy.

Different industry sectors deal with the concept of openness in different ways, and the factors that drive the concept of “open industry” are different. However, there are clear similarities. Increased openness is seen as the key to digital success and customer satisfaction, and with the rapid acceleration of digital platforms, it is needed as well as smart.

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Article: The Future of Business Is Open: How Open Data Is Changing Established Industries

Access, Money, Open Decision-Support, Open Governance, Open Health, Procedures (Medical)

The Future of Business Is Open: How Open Data Is Changing Established Industries

The open office concept reshaped much of working life — and was largely driven by a desire to improve collaboration, efficiency and effectiveness. A similar drive for collaboration is reshaping some bedrock industries of the American economy, albeit in the context of quickly evolving digital platforms.

Different industry sectors have treated concepts of openness with a range of responses, and the factors pushing them toward the “open industry” concept also differ. But there are definite similarities, as increased openness is seen as a key to digital success and customer satisfaction, one that quickly accelerating digital platforms make not only smart but necessary.

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Article: Protection of privacy paramount in open finance

API, Money, Open Governance, Open Infrastructure

Protection of privacy paramount in open finance

Open finance is a framework that gives people the right to choose with whom they share their financial data. Done properly, it should enable secure and easy sharing of data, which in turn will allow companies to develop products related to insurance, alternative lending, digital banking, personal financial management, account aggregation and more. Open finance will also promote financial inclusion for all South Africans; it is something that we can all look forward to.

The Financial Services Conduct Authority (FSCA) is paving the way for the regulation of open finance in SA. In May there was a feedback session on its draft open finance consultation paper. Here is a summary of the main points affecting fintech companies and traditional financial institutions alike.

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Article: Kat Cloud: How Do We Unlock Open Banking? The Answer’s in the Data

Money, Open Governance

Kat Cloud: How Do We Unlock Open Banking? The Answer’s in the Data

This is exactly the angle being discussed here by our guest Kat Cloud, the UK Policy Lead for the Open Banking platform Plaid. Her work focuses on protecting and enabling consumer’s rights to access and use their financial data. Before joining Plaid, Kat was the policy lead for Open Banking and PSD2 at the Financial Conduct Authority. A self-confessed payment-nerd, she has played key roles in delivering Open Banking, PSD2, and now open finance for the UK.

If Open Banking is going to truly revolutionize the financial services industry, then data democracy is the key to lowering the remaining barriers to progress and improving the consumer experience. How consumers access, manage and crucially, control their data has been the focus of the Open Banking debate for years.

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