Group items matching

in title, tags, annotations or url

The world continues to move towards open banking with some markets, including the European Union (EU), the UK and Australia, taking the lead by creating and passing favorable regulations, according to a new report by the Paypers. In a paper, titled Open Banking Report 2019 and released in September, the company explores the current open banking ecosystem and provides an analysis of the present global state of play of open banking.

Open banking has grown to become a global phenomenon and while pioneers like the UK and the European Union (EU) have turned to regulatory action to support the industry's transition into this new era of banking, legislators in Switzerland has reacted more cautiously so far. The Swiss Bankers Association (SBA) has already rejected the proposal for an interpretation of PSD2, the EU's second payment services directive, to be adapted to the Swiss market and have instead let the market decide how the topic should be tackled.

Federal Deposit Insurance Corp. Chairman Jelena McWilliams said that the agency aims to modernize the classification of brokered deposits to account for changes in technology and how many consumers use tech to get access to banking, including the rise of "third-party fintech apps.

With its rule change, the FDIC has significantly broadened the ability of fintechs and nonprofits to partner with banks without having being characterized as a "deposit broker" - so long as the third party's primary business is not accepting deposits. More importantly, the FDIC has initiated an application process where any third party can apply to the FDIC and receive an exemption if it meets the requirements of the new rule. Once the exemption is granted, banks can receive deposits from the fintech's customers without the deposits being characterized as "brokered deposits" by regulators.

The Financial Conduct Authority has issued a call for input on proposals to extend open banking rules to a wider range of products, under a new model billed as 'open finance'.

South Korea's Financial Services Commission reportedly launched an open banking service to enable bank customers to access nearly all banking services through a single smartphone application, including withdrawals and transfers.

Plaid serves as the connective glue between financial apps like Robinhood and Credit Karma and customers' bank accounts. Through the use of application programming interfaces (APIs), the San Francisco-based fintech links the two sides, allowing financial data to flow between them.

So, what happened in open banking 2019? In Australia, open banking is finally launched; Payments NZ in New Zealand launches open banking APIs and ther NZ banks follow; Mexico continues to be the hot spot for LATAM; Brazil launches open banking model; Additional API offerings launched in Malaysia to further enrich the open banking market there; US banks begin conversations on open banking and to develop open banking 'like' APIs; the Central Bank of Nigeria places open banking on its Payments Vision Statement (PSV) 2030 to become the next EMEA country to implement open banking; and Bahrian makes claim to implementing open banking.

Digital technologies have begun to transform the payments and banking systems, but the final impact of the change is far from determined. However, faster payments are here to stay, and the new payments technologies will disrupt legacy deposit and payments franchises. The level of disruption on incumbents will depend on the structure of their legacy business and on their response in adopting the new technologies.

Australian authorities have delayed the introduction of Open Banking rules by six months amid concerns over testing and security of the new provisions for account data sharing.

The U.K. Financial Conduct Authority has today launched a Call for Input on the opportunities and risks arising from open finance, what is needed to ensure it develops in the best interests of consumers, and what role the FCA should play.

Many PNC clients are having trouble connecting their bank accounts to their Venmo apps, cutting off their access to the popular mobile-payment system, owned by PayPal. When they have sought help, they have found the two companies blaming each other for the disruption. PNC suggested in tweets that customers switch to Zelle, a payment app that it and other big banks operate jointly and that competes with Venmo.

TokenOS™ gives banks and third parties PSD2 compliance and smarter, quicker data aggregation and bank direct payments driven by Smart Token technology.

The Central Bank of Kenya (CBK) outlined a five-year digitalization plan to modernize the country's domestic payment landscape. The CBK says it will work to define standards for API development and mandate data portability with hopes that more options and innovative solutions will be made available for users in Kenya to choose from. These standards will include API specifications for identification, verification and authentication; customer account information/data access; transaction initiation; and formats and coding languages for APIs. https://www.centralbank.go.ke/2020/12/23/invitation-for-public-comments-on-the-draft-kenya-national-payments-system-vision-and-strategy-2021-2025/

"The Saudi Central Bank "SAMA" announces the issuance of the "Open Banking Policy", which articulates the main objectives of implementing Open Banking in the Kingdom and its positive effects on the financial sector."

Maldives Monetary Authority (MMA) has signed an agreement with TietoEVRY, to implement an Instant Payments System. The project also involves developing a digital bank solution with a mobile application to enable the creation of new services, promote innovation and increase competition in the Maldives. Also it will give nonbank payment service providers access to the account-to-account domestic payments scheme using open APIs, thus enabling digital and integrated payment services. https://www.mma.gov.mv/#/news/PR-MCS-2020-7(english).html

According to the Capgemini/Efma World Retail Banking Report 2020 57% of consumers now prefer internet banking, up from 49% pre-COVID-19, and 55% prefer banking mobile apps, compared with 47% previously. The report also found that platform-based banks find it up to two-times easier to increase operating profits, unlock new sources of value, and improve operational efficiencies. It also found that 80% of bank executives cited cybersecurity and privacy concerns, outdated data management (68%) and identifying the right partners (73%) as primary barriers to moving to a platform system.

This Boston Fed paper discusses the key developments, drivers, and considerations in the U.S. market that support progress towards open banking and application programming interfaces (APIs) and how APIs offer a wide variety of new services. It finds that opening a bank's platform to third-party applications can create synergies with innovative technology businesses to build a new generation of digital financial activities that enhance the consumer experience. Open banking can create a paradigm shift in how financial institutions (FIs) treat the issue of ownership, storage, and use of data. However, several risks and challenges need to be addressed. The industry is waiting for guidance from the Consumer Financial Protection Bureau (CFPB). Interoperability is lacking and many FIs struggle to replace legacy infrastructures with fully digital platforms, which can require considerable investment. FIs may be struggling to prioritize open banking and API permissioned data with competing projects.

Ant Financial Services Group has seen a surge in banks interested in its digital technology. The number of customers paying for Ant to help them build mobile apps and provide cloud computing power jumped by 175% in the two months through April, and it's now working with more than 200 lenders, according to the company. Inquiries to collaborate with the tech giant increased by 400% over the period.

Data aggregator Plaid Inc., whose software is used by apps including Venmo, Coinbase, Square, and Stripe, accesses user bank accounts and collects detailed financial information without consent, a new class suit filed in federal court claims. Plaid's software is used by more than 2,000 apps to link consumer financial accounts, and about 1 in 4 people in the U.S. have an account linked via Plaid, the suit says.