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EBAday 2020: Open Banking will be a success when we stop talking about it

EBAday 2020: Open Banking will be a success when we stop talking about it

Open Banking’s success will be confirmed when it is longer talked about, according to Dan Globerson, head of open banking at NatWest.

Speaking on the ‘How open is Open Banking?’ panel on the first day of EBAday 2020, Globerson states that Open Banking needs to reach a point where it is just accepted as a conventional way of consumers, corporates and banks managing accounts and making payments.

“Banking itself is a rather simple activity - it's money going in and money going out,” Globerson says.

“If you look at how we’re trying to facilitate this with Open Banking and PSD2, they’ve been landing really well. It’s just a case of the systems maturing and availability expanding - even if availability is at 99%, that final 1% could be where it’s really needed.”

Globerson and his fellow panelists agree that the potentials of Open Banking will be better realised when products and services are developed in the corporate banking sphere, as well as in retail banking.

Mario Benedict, head of APIs and digital product solutions at JPMorgan, says: “We’re looking at how Open Banking can help with our corporate clients’ pain points.

“So, we’re looking at integration with existing payment rails infrastructure to create holistic payments and reporting service for clients with real-time data, to help them manage their mandates and get the information they require faster.”

Globerson agrees that corporate banking has been “under invested and under discussed” in the Open Banking conversation, to the detriment of the whole ecosystem.

“If we can create products and services that are competitive and effective for companies as well as consumers, it will help drive competition, compress margins and disintermediate the whole space,” he says.

This would be where Open Banking would enable financial institutions to transcend their traditional roles in their customers’ and clients’ worlds and become “ecosystem enablers”, as Pelin Dumans, product owner at ABN AMRO, puts it.

“It won’t be just about creating APIs and putting them out to market,” she says.

“We’ll be able engage with more third parties and create more partnerships, from which everyone will benefit: customers, banks, vendors, consultancies and so on.”

Join our digital platform for EBAday 2020 on 24-26 November to discuss, debate and hear about the latest products and services that will shape the industry in the years ahead.

Comments: (1)

Angelos Michalos
Angelos Michalos - PaymentComponents - Athens 25 November, 2020, 09:03Be the first to give this comment the thumbs up 0 likes

"All change is hard at first, messy in the middle, and so gorgeous at the end." Robin Sharma's famous quote is so true about Open Banking. It is something so fresh and innovative for financial institutions that they definitely need time to understand the opportunities behind it. However, as in all new trends, the early-adopters will be the ones that will reap the benefits of the Open Banking!