AWS-Contino Breakfast Briefing: Using DevOps and AWS to thrive after Open Banking & PSD2

Chris Michael, Chief Technology Officer at Open Banking, explores the regulation that’s coming, why it matters to finance organisations and why we believe DevOps, smarter thinking and the cloud can unlock new revenue streams for the ‘Big Boys’ as well as the upstart startups.

Want to learn more? Visit https://www.contino.io/industries/retail-banking

The latest open banking solution by @GoCardless could be a game-changer for optimizing payer conversion rates at a low cost, and in this video, we explain why ����

In this episode of ‘All about Payments’, @Marek covers:

�� Challenges in collecting one-off payments
�� Open Banking Adoption in Europe
�� Most common use cases of open banking

Do you believe Europe has a long way to go in order to catch up with the UK’s open banking adoption? Share your thoughts!����

#PSD2 #Openbanking #FinTech

Transcription:
Although open banking is still a new concept, Europe is seeing a positive growth trend in Third Party Providers. That being said, Europe is still falling behind the UK in terms of open banking adoption. This video covers Instant Card Pay, the latest open banking solution by GoCardless and the open banking field in Europe.

Competition in open banking payments is getting more fierce. Now even more so with GoCardless being the latest platform providing the service, just months after raising $95 million in a Series F funding. This article breaks down the open banking service GoCardless just announced and touch upon how far open banking has come in Europe

After announcing its intention to accelerate its open banking strategy last year, GoCardless just launched one-ff bank-to-bank payments for its customers in the UK.

This solution called “Instant Bank Pay”, is PSD2 based and offers merchants a low-cost method for instant payments collection, pushing back the dominance of cards for one-off payments.
The 5 Main Advantages of GoCardless’ Open Banking Service

Card payments have expensive transaction fees and
Bank transfers are time consuming and
Merchants are often at risk due to chargebacks.
Optimized payer conversion rates
Time efficiency

In short, chasing one-off payments from customers remains a challenge, and the current options are limited.
Availability of Instant Bank Pay
For now, this service is exclusively available to UK merchants, and serves customers paying via a limited number of banks. That being said, the service is expected to be rolled out to more countries later this year.
How Collecting One-off Payments With Open Banking Works
It is actually quite simple. Merchants can send a link to request payment, or build the option into their checkout flow, after which customers are connected to their bank and can authorise the payment in a few clicks, followed by an instant payment confirmation.

What is quite interesting about the rollout of “Instant Bank Pay” is that GoCardless originally started as a recurring payment processor but is now offering its customers a complementary, value added solution. Not to mention the benefit this solution offers when it comes to high value transactions.
Open Banking Adoption in Europe

Although open banking is still a new concept, Europe is seeing a positive growth trend in Third Party Providers. At the same time, individual European countries differ in how well and how far they have progressed towards making open banking a success.

According to industry experts, Europe is falling behind the UK when it comes to open banking adoption. Even though a number of banks are highly advanced in their strategies, many are still struggling to adapt and innovate.
Top 6 Applications of Open Banking
Currently, the most prevalent open payments application is the topping up of bank accounts and digital wallets. Other use cases include e-commerce payments, purchasing subscription services, recurring payments and onboarding.

We, however, would say there are many more possibilities within open banking. We believe that it can play a key role in boosting customer experiences and customer retention in verticals such as online gaming.

To conclude, Europe is on the right track to accelerating open banking adoption, but there is still a long way to go before we fully utilize and realize the possibilities within open banking. We suspect that the main reasons Europe is falling behind are the lack of readiness from local banks and technical complexity.

Panel moderated by J.Bates, Deputy CEO, 11:FS (UK)

Speakers
*I. Gulamhuseinwala, Trustee, Open Banking Implementation Entity (UK)
*L. Fratini Passi , CEO, CBI (IT)
*J. Burkovic, CEO, Bridge powered by Bankin’ (FR)
*C. Andvig, CEO, Neonomics (NO)

more on www.parisfintechforum.com/videos2020

Open banking, a potential “revolution” in banking by allowing for free movement of customer financial data. But why is open banking still struggling to take off despite its unlimited potential?

Intro – 00:00
The unlocked open banking revenue – 00:41
Open banking’s biggest road blockers – 01:29
What’s next for open banking – 02:43

Are you comfortable with sharing your banking details with third parties? ��

#FinTech #Openbanking #data #PSD2 #Payments

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Transcription:

Open banking, once introduced as a revolution in banking by allowing for free movement of customer financial data, is currently one of the hottest topics in FinTech
 
Advocates say it could democratize data and fuel a fintech revolution. But…. reality often fails to live up to its potential and the dream, as open banking has been received with an underwhelming adoption rate, non-cooperating banks and unimpressed regulators.

But why is open banking still struggling to take off despite its unlimited potential?

Good morning everyone, this is Marek from PaymentGenes and today, it’s All About Payments!

In essence, ​​open banking is just enabling something electronically which was already possible. Yet, the market doesn’t seem too impressed. 

In the UK, there are only around four million users, which falls short of the predictions to hit 33 million users by next year.

Open banking can be key in unlocking huge opportunities.  McKinsey reports that open banking could contribute 1 to 1.5% of Europe’s GDP by 2030. But it also found that only 10% of that value is unlockable today. 

In addition, Accenture reports that $416 billion in revenue might be unlocked within the open banking global market.

Given open banking’s potential, this is what experts have to say about the roadblocks standing in its way.

First and foremost, data sharing needs to be standardized. Currently, there are thousands of banks in Europe, and each one has its own API. 

Open banking can be key in allowing apps to intercommunicate seamlessly by logging onto your bank app. Companies like Innopay are working on standardizing data and facilitating more seamless data sharing.

Open banking has received quite a backlash so far. It is clear that banks are uninterested to invest in promoting and fine tuning an open banking offer given that they are simply mandated to comply without profiting from open banking at the moment.

Because sharing banking details is so counterintuitive to consumers, there is also an issue of data security here. Recent research revealed that 42% of US consumers are suspicious of how secure their shared data really is.

We dedicated an entire episode just addressing consumer concerns with open banking recently, hence we highly recommend you watch it if you want to learn more about this particular challenge.

To conclude, we want to emphasize that despite its slow growth, open banking will inevitably become the new norm.

As for banks’ cooperation, we believe that once Open Finance is rolled out, banks will finally see the profitability of open banking, and will therefore be more eager to attract customers to new open banking solutions.

Finally, are you comfortable with sharing your banking details with third parties? Let us know your take on this one! 

Before you go, we want to let you know that our colleague Sonia from PaymentGenes Consultancy, just organized a roundtable to tackle payments sustainability and mobility, so if you are interested in this topic, don’t miss out on this roundtable and register at the link below!