Open Banking has been less of a catalyst and more of a ‘gentle nudge’, with consumer-facing applications being limited to account aggregation services.
Adam Bialy, our Chief Product Officer, spoke to Silicon UKrecently about the effects of COVID-19 on the financial services industry. In a wide-ranging report, entitled The Future of FinTech, Silicon UK interviewed thought leaders from Deloitte UK, r3, ncino, Tribe Payments and OpenPayd, to understand what Open Banking meansfor the security and future development of payment systems.
In the concluding part of Silicon UK’s series on the development of FinTech, they wanted to know what the future looks like, what trends are apparent, and how businesses can take advantage of this expanding sector. We have shared sections of the interview with Adam below.
Adam Bialy, CPO at OpenPayd, explained: “COVID-19 will inevitably force rapid acceleration of digital transformation across the financial services industry. Right now, the spotlight is on the banks’ ability to adapt and survive without people visiting branches and without reliance upon manual processes. Those that didn’t truly commit to a digital transformation strategy yesterday are set to pay the price today.
Before the pandemic, Open Banking was seen as the catalyst that would finally trigger real transformation among the traditional financial services sector. However, back in August 2019, research revealed that while 15% of traditional banks have built an API, not one is fully meeting PSD2 requirements. Open Banking has been less of a catalyst and more of a ‘gentle nudge’, with consumer-facing applications being limited to account aggregation services.” Bialy concluded: “While Open Banking has been less than success from a B2C perspective, there is an enormous opportunity in B2B around SMEs and corporate banking. By allowing third-party FinTechs access to business accounts, payment providers, lenders and equity managers, they will be able to better serve businesses desperate – especially under COVID-19 – to improve operational efficiencies, cut costs and better serve their customers.”
Featured in silicon.co.uk - read full article here.
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