Open Banking: A Continuous Journey with Endless Possibilities
Money20/20’s annual Europe event commenced with a captivating discussion on the progress of open banking, according to the Finextra newsletter. The session titled «From Concept to Reality: Five Years of Open Banking» was expertly moderated by Helen Child, founder and CEO of Open Banking Excellence (OBE). Joining her were industry leaders Nick Corrigan, European president of Global Payments; Tom Pope, SVP payments and platforms at Tink; and Jim Wadsworth, EVP of strategic market development at Konsentus.
Corrigan emphasized the importance of looking beyond the current situation and revisiting the foundational principles of open banking. He asserted that these principles revolve around financial inclusion, financial well-being, and the integration of technology within the financial services sector. Despite being five years into the open banking journey, with two years disrupted by a pandemic, Corrigan acknowledged that we are still in the early stages. However, he expressed optimism, stating, «We have laid the building blocks in place.»
Identifying the core building blocks, Corrigan highlighted the account and payments sides. Pope, however, voiced his frustration with the term «open banking» and preferred to be recognized as a payments company with a data-driven focus. He explained, «Selling open banking is meaningless. We should focus on identifying problems within specific markets that open banking can solve. It could be a data-related or payments-related issue, or a combination of both, offering innovative solutions.»
Turning to the European landscape, Wadsworth acknowledged that while open banking in Europe had made a good start with initiatives like PSD2, there was still much work to be done. The panelists agreed that the UK’s open banking initiatives had set a benchmark globally. However, they also recognized the commendable efforts of other countries. Wadsworth praised Poland’s system as a superb example of leveraging existing infrastructure for account payments and expanding into areas like point-of-sale and QR codes, effectively penetrating the ecommerce domain.
Corrigan further reflected on the regulatory perspective, noting that the UK and Europe had been surpassed in ambition by other regions. He concluded by emphasizing the ongoing nature of open banking, stating, «No one really knows what the end game is. We’re right at the start.»
As open banking continues to evolve, industry leaders recognize the need to maintain a broader perspective and remain open to new possibilities. While acknowledging the progress made, they emphasize the importance of addressing market-specific challenges and leveraging technology and data to drive innovative solutions. The future of open banking remains uncertain, but the industry is committed to forging ahead, transforming financial services and enhancing the well-being of individuals worldwide.