Insights into Payments and Beyond

Global Open Banking Report 2020

Beyond Open Banking – Into the Open Finance and
Open Data Economy

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Global Open Banking Report 2020

Beyond Open Banking – Into the Open Finance and

Open Data Economy

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 Management Summary
Open Banking paved the way for a new generation of financial products, giving consumers more choice and control over their financial

lives, and driving competition in the financial industry.

With Open Banking, banks also have a unique opportunity to create products and services that solve corporates and SMEs’ pain points

and improve their services. To do this, banks will need to do more than deliver their existing products better. They will need to enhance

their digital and data analytics capabilities and develop an ecosystem of partners to improve personalisation and deliver more value-added

services beyond simply meeting their financial needs.

The advantages for corporates and SMEs can be enormous, particularly in areas including holistic finance management, account

aggregation, creditworthiness assessments, cash flow and liquidity management, credit risk scoring, streamlined B2B payments, automated

onboarding and identity verification, lending, account information, invoicing, tax digitalisation, cash forecasting, lending, accounting,

payment tracking, request to pay etc.

Open Banking and the path to Open Finance and Open Data
While Open Banking continues to gain traction all over the world, foundations are being laid for the next wave of financial innovation: Open

Finance. According to LUXHUB, Open Finance will usher in an increasingly competitive financial services sector, which inevitably leads to

greater haste in the development of new products and services.

Open Finance empowers consumers to access their financial data beyond current accounts (extending to mortgages, credit, student loans,

automotive finance, insurance, mortgages, investments, pensions, loans etc), ultimately delivering real value for the customers – saving

services, identity services, more accurate creditworthiness assessments, new advice and financial support services etc.

‘The Great Pause has been a distinct reminder to retail banks that ‘build it and they will come’ is simply not a resource nor time-efficient
guiding motto.’ – Plug And Play

Beyond Open Banking and the desire to make Open Finance a reality, a data-led economy is also a high priority on the agenda of all

stakeholders involved. The European Commission has published a Data Strategy proposal to allow the EU to take full advantage of

data-driven innovation while prioritising the interests of individuals following European values, fundamental rights, and rules by managing

the cross-sectoral use of data between sectors (in health, manufacturing, agriculture, mobility, energy, etc), all while creating a scalable

infrastructure for data markets, activating individuals and businesses to share data, collecting, combining, enriching and refining data into

information and actionable insights.

A data strategy has the potential to shape people’s lives and well-being through services such as, among others: automating switching and

renewals (eg switching between utility companies and general insurance products), access to health data for research to develop health

applications, intelligent mobility systems, smart home applications, analysis of agricultural data to optimise liquidity demand and manage

the supply chain for farmers, and many more.

In our Open Banking report, we will track the journey from Open Baking to Open Finance, the potential and the impact of Open Finance

on different areas of financial service, all while providing provide key considerations for Open Finance to become a reality and key insights

on how an environment that supports the safe and robust development of the data economy is essential for banking transformation.

The success of Open Finance is dependent on customers being prepared (educated) to engage and willing to allow third party providers

access to their financial data. ➔

3 Global Open Banking Report 2020  |  M ANAGEMENT SUMMARY

 Management Summary
The challenges associated with Open Finance are similar to those of Open Banking but with a great focus on data access, fragmentation,

the misuse of data, appropriate consumer protections, and a growing need to building trust with users.

Essentially, Open Finance should make space for competition and innovation beyond the regulatory minimum. Beyond simple compliance

is the potential for banks to open up a wide array of APIs and services that exceed the minimum levels mandated by legislation. Open

Banking enables the development of premium APIs, which, when fully developed, can crucially enable Open Finance by allowing data

sharing practices to be effectively applied to a plethora of new sectors.

The options for API monetisation are almost limitless, says Kunal Jhanji, partner at BCG. However, while is important for markets all

over the world to determine which regulatory model to deploy, it is also essential that they are proactive in creating a commercial solution

that works for all. The regulators have the responsibility to enable a working ecosystem, but players must take it to the next level, and API

monetisation will be crucial in doing so.

Open Banking is being shaped in different geographies

Initiatives across different jurisdictions have emerged to make Open Banking/Open Finance a reality, ranging from direct regulatory

requirements to market-coordination and industry-led initiatives.

In this fourth edition of The Paypers Open Banking Report, we analyse how Open Banking has evolved around the world, by developing

insight into the Open Banking initiatives in key markets including the UK, US, Europe, Asia, Asia-Pacific, Latin America, South-Asia (India),

Africa (Nigeria).

Use cases, data sharing, security and compliance, API frameworks, and customer experience are common (and worrisome) topics across

all these regions.

There are challenges and inconsistencies in both developed and emerging frameworks, especially those related to standardisation, data

sharing, TPPs adequate controls etc. Even where controls are in place, clear rules on liability and dispute resolution are yet to be resolved.

Lastly, sustainability is a very debated factor in all markets: while in some jurisdictions banks are allowed to charge a fee to third parties,

in others, such as PSD2 in Europe, charging fees is not allowed.

From theory to practice – Open Banking use cases

A survey among 2000 financial institutions conducted by INNOPAY and The Paypers in May 2020 found that most global banks, fintechs,

and investors are especially looking to learn more about inspiring use cases enabled by Open Banking. As such, one of our aims, with

2020’s Global Open Banking report is to expand on the premise of the survey itself and to analyse the use cases already driving value for

consumers, SMEs, and corporates and those that hold great potential.

The success of Open Banking will rest on it being beneficial to end-users, be they consumers, SMEs, or corporates. This will require a

relentless focus on removing friction from the experience of all stakeholders – not just end-users but also the developers and TPPs that

will play an integral role in shaping the future customer experience.

A key takeaway is that the consumers need more than just insights; they want the means to put in action decisions, simply and cheaply,

explains Moneyhub - meaning concrete tips and actionable offers to help improve their finances (eg expenditure analysis, personalised

offers based on past expenditure etc). ➔

4 Global Open Banking Report 2020  |  M ANAGEMENT SUMMARY

 Management Summary
When it comes to payments, consumers are demanding better, more efficient payments experiences that fit into their lifestyles, shows

Trustly. Open Banking is one of the key initiatives helping to address both consumer and merchant needs. In this report, we give our readers

a useful summary of the benefits of Open Banking Payments, we explain how Open Payments can offer advantages over cards, why

Open Banking Payments are attractive to consumers, and show how offering the right payment methods and better customer experience

can give merchants a competitive edge.

On the SMEs side, BankiFi provides key insights regarding the benefits of the Request to Pay service, which offers SMEs and their customers

a way to interact over payments, and way more choice.

Lastly, our report demonstrates that there is even more of an opportunity in business-to-business (B2B) around SMEs and corporate banking.

For instance, Worldline foresees strong interest in the development of ‘augmented’ cash management tools combining data analysis with

payment means such as split payment or Buy Now Pay Later features.

How to build the Open Banking ecosystem in an agile and secure way
To remain competitive, banks need an approach to Open Banking which fosters valuable collaborations with startups and fintech

developers. Banks must look to actively partner for success, which means harnessing Open Banking and tapping into partners who are

vital to building the Open Banking ecosystem. Partnerships and value co-creation with other players will pave the way to the banks’ overall

mission to transform innovation into superior customer experience.

According to INNOPAY, banks are now increasingly striving to entice collaboration and innovation with – and within – a wider community

of API consumers (developers and businesses).

Banks seeking to claim a solid position in the Open Banking landscape will need to move beyond merely offering high-quality documentation,

sandboxes, developer tools, and seamless access to APIs. Most importantly, they need to build, grow, and nurture their Open Banking

community to strengthen their position and accelerate their commercial efforts.

‘In order to become ‘Masters in Openness’, banks need to combine a rich API offering with a solid community-building and engagement
strategy.’ – INNOPAY

Specifically, banks are in a position to increase the number of developers using their APIs, obtain more direct input and feedback, signal intent

for innovation, and collaborate with the aim of developing relevant products and services. Overall, this contributes to better facilitation

of API ideation and use-case development to drive reach and adoption among end users.

Addressing the issue of Open Banking and PSD2 compliance and security is also key in building a powerful Open Banking ecosystem.

This is where Konsentus, through Konsentus Verify solution, can help – it protects financial institutions and their customers from Open

Banking fraud and risk by ensuring account access and data is only ever given to legitimate and regulated TPPs.

Lastly, selecting the right API connectivity provider is of utmost importance, as their technology capabilities can assist banks in launching a

successful PSD2 proposition for their customers while accelerating the development process and time-to-market. In our report, we will deep

dive into some the most important criteria in selecting the connectivity provider, including connectivity reach, functional scope, costs etc. ➔

5 Global Open Banking Report 2020  |  M ANAGEMENT SUMMARY

 Management Summary
Global mapping of key players – who’s who in Open Banking
Our Open Banking survey also brought to light the need for clear guidance with respect to who is offering what when it comes to players

and enablers in Open Banking space. As such, our Open Banking report 2020 will feature an exhaustive outlay of the Open Banking

ecosystem in the guise of a thorough global infographic and industry mapping of the key solution providers in Open Banking and

their offerings and solutions.

The global industry mapping outlines the key players’ fact files per each core category as follows:

• Open Banking enablers

• API connectivity for payment initiation

• API connectivity for data retrieval & value-added data solutions and services

• Consent management

• TPP checking & repository

• Bank in the box/banking-as-a-service/core banking infrastructure

• End-user solutions and propositions

• Security/Risk management/Fraud

The poof of the pudding is in the eating

The real worth, success, and effectiveness of Open Banking and Open Finance can only be determined by putting it to the test. Just as

customers judge the staff, food, and cleanliness of a restaurant, they are also making their own judgments about the services enabled by

Open Banking (and their usefulness).

While we recognise the promise of Open Banking (and of Open Finance), the growth opportunities are still enormous and the possibilities

for improvement endless.

‘Open Banking does deliver the promises of its creators, but the perception of a product is more important to judge the success of a product
than the promises themselves.’ – Holland FinTech

Open Banking and Open Finance open an unprecedented opportunity to re-design financial services for maximum scalability and efficiency.

Players can create new services that are more competitive, give customers more financial choices which are better tailored to meet their

specific needs (for example, an open use of data can benefit low-income people entering the financial system).

Open Banking, Open Finance, and developments such as the EU Data Strategy are democratising access to data assets across the

whole economy. In this changing world, notes INNOPAY, banks now facilitate only a fraction of a customer’s (daily) digital interactions and

transactions. However, as money custodian, banks are now ideally placed to expand their role into the data domain.

Banks can lay claim to the role of ‘data custodian’ in their customers’ daily lives by engaging in a cross-sectoral data ecosystem. There

are no two ways about it, demonstrates INNOPAY. Banks can either ignore the digital transaction revolution and stick to their existing beliefs,

continuing to invest in payments only and competing with bigtech, or they can expand their role as money custodian into the data domain

to secure their future relevance in the data economy. As INNOPAY says, banks will have to recognise that putting customers in control of

their money and data is imperative for future strategic and commercial relevance.

Oana Ifrim | Senior Editor | The Paypers

6 Global Open Banking Report 2020  |  M ANAGEMENT SUMMARY

 Table of Contents
3 Management Summary

9 The Ambitious Path from Open Banking to Open Finance

10 Three Conditions for Open Finance to Succeed | Nicole Jonker, Senior Economist & Michiel Bijlsma,
Head of the Payments Policy Department, The Nederlandsche Bank
12 Interview with Jacques Pütz on how LUXHUB is Helping to Shape the Future of Finance | Jacques Pütz, CEO, LUXHUB
17 API Monetisation: Making a Success of Open Banking | Kunal Jhanji, Partner, BCG
19 Interview with Nilixa Devlukia about Payments and the Journey to Open Banking, Open Finance, and Open
Everything | Nilixa Devlukia, Founder and CEO, Payments Solved
21 Banking Innovation, Open Banking, and What We’ve Learnt from the Great Pause | Gabrielle Inzirillo Director,
Fintech (EMEA) & Madeline Wallace, Marketing Manager & Poey Lam, Program Manager, Plug And Play
23 EPI: Paving the Way for Future Bank Relevance, and Not Just Through Payments | Mounaim Cortet,
Senior Manager Strategy, INNOPAY
25 Why Banks Must Become the Data Custodian in the Data Economy | Mounaim Cortet, Senior Manager Strategy, INNOPAY

28 Open Banking Developments Across the Globe

29 UK: Open Banking Is the Stepping Stone to Consumer-Directed Financial Services | Imran Gulamhuseinwala,
Implementation Trustee, Open Banking Implementation Entity
31 US: Interview with Ad van der Poel Regarding the Open Banking and Open Finance Opportunities for Consumers,
Corporates, and SMEs | Ad van der Poel, Co-head of Product Management, Global Transaction Services for EMEA,
Bank of America
33 Latin America: The Open Banking Journey in Latin America | Bruno Diniz, Managing Partner, Spiralem
35 Asia: Tracking Asia’s Progress with Open Banking | Joshua Chong, Analyst, Kapronasia
37 Asia-Pacific: Open Banking Gaining Momentum Across Key HSBC Markets in Asia Pacific | Alvin Lim,
Regional Head of Open Banking Engagement, Wealth, and Personal Banking, HSBC HK
39 Asia - India: The Evolution of Open Banking in India | Sameer Singh Jaini, CEO & Shashank Shekhar, Head of Consulting,
The Digital Fifth
41 Africa - Nigeria: Sterling Bank - The Open Banking Strategy and | Adeyinka Adekoya, Digital Transformation Manager,
Sterling Bank

44 Open Banking – Outstanding Use Cases and Propositions

45 Unlocking Value Through Meaningful Insights
46 Open Finance - The Journey from Insight to Value | Vaughan Jenkins, Sales Director, Moneyhub
52 Open Banking as the Dawn of a New Era | Patrick Langeveld, Innovation Driver, ING
54 TrueLayer | Company Profile / Overview at a Glance

57 Open Banking and Payments

58 Post-PSD2: One Year on, Where Are Open Banking Payments Now? | Ciaran O’Malley, Head of Commercial Strategy, Trustly
63 Request to Pay – Don’t Wait, Start Today | Conny Dorrestijn and Mark Hartley, Founding Partners, BankiFi

7 Global Open Banking Report 2020  |  TABLE OF CONTENTS

 Table of Contents
69 Unnax | Company Profile / Overview at a Glance
72 Balancing Risk and Customer Experience in the World of Open Banking | Ron van Wezel, Senior Analyst, Aite Group

74 Open Banking – What It Means for SMEs and Corporates

75 Interview with Mathieu Barthelemy and Tom Wijnen on How Open Banking Stands at the Heart of Digital Trans­
formation | Mathieu Barthelemy, Product Manager, Worldline & Tom Wijnen, Product Marketing Manager, equensWorldline
81 Interview with Nadya Hijazi from HSBC about the Open Banking Journey so far at the Bank and Future Perspectives |
Nadya Hijazi, Managing Director and Global Head of Digital (GLCM), HSBC
83 Open Banking – The Next Big Thing for Corporates? | Kate Pohl, Consultant and Advisor, Senior Advisory
85 Open Banking Through the Corporate Lens | Sairam Rangachari, Global Head of Digital Channels & Open Banking,
Wholesale Payments & David Gomez, Executive Director, Wholesale Payments, J.P. Morgan
87 Interview with Anna Mitchell from Starling Bank about How the Challenger Bank is Positioned to Enable SMEs to Thrive
in Challenging Times with the Use of APIs | Anna Mitchell, Head of Marketplace, Starling Bank
89 Open Banking and APIs: Unlocking the Benefits for Treasurers | Moritz Strobel, Global Head Open Banking/API & Jose M
Buey, Global Head Accounts Platform and Services, Deutsche Bank

91 How to Build the Open Banking Ecosystem in an Agile and Secure Way
92 INNOPAY Open Banking Monitor Shows Increasing API Focus on Business and Community Context | Jorgos Tsovolis,
Consultant & Mounaim Cortet, Senior Manager Strategy, INNOPAY
95 Three Considerations for Building and Leveraging an Open Banking Community | Jorgos Tsovolis, Consultant &
Mounaim Cortet, Senior Manager Strategy, INNOPAY
99 Six Criteria for Selecting Your API Connectivity Provider to Power PSD2 Opportunities | Annabel Keulen Business
Analyst & Luc van Oorschot, Manager, INNOPAY
102 Open Banking - Are You Doing Enough to Protect Your Customers? | Mike Woods, CEO, Konsentus
107 kompany | Company Profile / Overview at a Glance
110 TypingDNA | Company Profile / Overview at a Glance
113 Interview with Carmela Gómez Castelao from BBVA on the Open Banking Journey at the Bank | Carmela Gómez
Castelao, Global Head of Open Banking, BBVA
115 Open Banking from RBI’s Perspective | Tanja Imamovic, Open API Business Owner, Group Strategy & Miriam Obetkova,
Group Strategy, Raiffeisen Bank International AG I Member of RBI Group
117 ThreatMark | Company Profile / Overview at a Glance

120 Global Mapping of Key Players

126 Open Banking – the Proof of the Pudding Is in the Eating

127 Perception Value Versus Product Value in Open Banking | Camilla Paquette, Head of Operation, Holland FinTech
129 Ozone API | Company Profile / Overview at a Glance
132 Open Banking: How Can Third Party Providers Succeed? | Dr. Ruth Wandhöfer, Strategic Adviser, ETPPA

8 Global Open Banking Report 2020  |  TABLE OF CONTENTS

The Ambitious Path from Open Banking
to Open Finance

While Open Banking continues to gain traction all over the world, foundations are being laid for the next wave of financial

innovation: Open Finance. In our Global Open Banking Report 2020 we track the journey from Open Baking to Open

Finance, the potential and the impact of Open Finance on different areas of financial service, all while providing key

considerations for Open Finance to become a reality and key insights on how an environment that supports the safe

and robust development of the data economy is essential for banking transformation.
 The Nederlandsche Bank
Three Conditions for Open Finance to Succeed

About Michiel Bijlsma: Michiel Bijlsma is Head of the Payments Policy department at the
Nederlandsche Bank since January 2018. He is also an extramural fellow at the economics
department of Tilburg University, and he has a PhD in Theoretical Physics.

Michiel Bijlsma    Head of the Payments Policy Department    The Nederlandsche Bank

About Nicole Jonker: Nicole Jonker is sr. economist of the Payments Policy department at the
Nederlandsche Bank since June 2004. She has a PhD in Economics.

Nicole Jonker    Senior Economist    The Nederlandsche Bank

New technology together with new regulation aiming at boosting access, APIs, are not yet sufficiently standardised. This makes it
competition and innovation has increased the importance of custo­ difficult for TPPs to offer their services throughout Europe in a scalable
mers’ payment data in the financial sector. By making intelligent way. There are market initiatives which work towards gradual API
use of data, service providers will be able to develop new tailor- standardisation, while so-called ‘integrators’ may curb market frag­
made financial services, improve risk assessments, and much more. men­tation by acting as an intermediary between banks and TPPs.

Nevertheless, standardised access to data is vital. This means

In the EU, we’ve taken an important first step into open finance with that a rule-based approach for data sharing — as with Open Banking
the introduction of the revised payment services directive. PSD2 in the UK— may be preferable to the principle-based approach
allows trusted third-party providers (TPP) to access a customer’s applied in PSD2.
payment account. They can then offer that customer account infor­

mation or payment initiation services. TPPs must of course first get It is also important to consider how the data originating companies
explicit consent from customers to do so. can be incentivised to provide TPPs access to data and to keep their

data sharing infrastructure secure and up to date. According to

Open finance is a natural progression from PSD2. With open finance, PSD2, banks may not ask TPPs for compensation for data-sharing
TPPs would also be able to access individual customer’s other of payment data. The question is whether this zero-access price is
financial data. In turn, PSD2 and open finance are part of a broader optimal, given the large investments banks and other data-storing
development: open data. In the near future, consumers and companies organisations have to make to achieve this. Furthermore, compen­
may share a variety of private data with TPPs. sation may be needed to cover the costs incurred each time customers

grant or revoke TPP access to their data, and each time data is
From experiences with PSD2 there are three important lessons for shared with a TPP. ➔
making open finance a success. The first lesson concerns the way

data will be shared. The organisations which store the data will need

to provide standardised access to TPPs to these data to avoid

market fragmentation. In the context of PSD2 the tools that facilitate

10 Global Open Banking Report 2020  |  The Ambitious Path from Open Banking to Open Finance
 The second lesson is that there are multiple public interests at stake. The main reason the Dutch aren’t keen on sharing data with

The legislator, regulators, and public authorities involved need to these newcomers to the payment market is lack of trust. With the

engage in dialogue with one another. In designing future-proof legi­ evolution of PSD2 to open finance, TPPs are provided with access

slation and regulations for data-sharing, it is key to consider all public to an increasing amount of sensitive financial data, and the impact

interests related to data sharing, as well as different international of misuse or abuse increases. Fraud risks need to be mitigated and

per­spec­tives. This requires cooperation and coordination. adequate consumer protection is paramount. Otherwise, people will

refuse to share their data.

When it comes to access to data, there are multiple public interests

involved. Financial stability, privacy, and concentration risks should Finally, it is also crucial that consumers know they are in control over

all be well addressed. These different interests are sometimes at their data. Not only that, but they also need to feel that they’re in

odds with each other, resulting in a trade-off between the different control. That is why consumers should be able to easily gain insight

goals. Since the use of large amounts of personal data and data into which parties have access to their data. Such insight could be

analytics are relatively new fields, there is yet limited case law on provided at the source of their data, that is, their home bank, or at

how to balance all interests concerned. To better balance them in another data storing organisation. In addition, consumers should be

future proof policy, the legislator, the regulators, and other public able to easily and securely give a TPP explicit consent to access

authorities who represent different public interests, should enter and use their data. Also, it should be equally easy for them to revoke

into dialogue with each other and coordinate their work. These this consent whenever they wish. This should preferably be done at

include the central bank, the prudential supervisor, and the financial the bank or at another organisation that stores their data.

conduct authority in case of financial data sharing as well as the

competition authority and the data privacy authority. If these three lessons are all taken into account, access to financial

data in an intelligent and secure way may spur innovation and compe­

The third lesson is about trust. Consumers must trust the TPPs that tition in a new financial ecosystem, to the benefit of both consumers

want access to their data. If potential customers don’t trust TPPs and businesses.

offering new services, they will not consent to giving this data, nor

will they use their services. This requires for firms to be able to Bijlsma, M.J., C.A.B. van der Cruijsen en N. Jonker (2020) Consumer

credibly signal to consumers that they can be trusted. propensity to adopt PSD2 services: trust for sale? DNB Working

paper 671.

A recent study by De Nederlandsche Bank shows that most Dutch

aren’t willing to share their payments data. Half of them only want

to share it with their own bank. However, less than 4% are open to

data-sharing with non-banks.

About The Nederlandsche Bank: The Nederlandsche Bank (DNB) is the Dutch central bank, supervisory authority,
and resolution authority. DNB seeks to safeguard financial stability and thus contributes to sustainable prosperity in the
Netherlands. DNB works in tandem with its European partners to achieve this.

[Link]/en

11 Global Open Banking Report 2020  |  The Ambitious Path from Open Banking to Open Finance
 LUXHUB
By combining firm banking foundations with innovation and technical expertise, LUXHUB has emerged as a key driver of the

European financial sector’s evolution towards Open Banking. CEO Jacques Pütz discusses how LUXHUB is helping to shape

the future of finance

About Jacques Pütz: Jacques has, for more than two decades, been at the forefront of tech
innovation in Luxembourg. Firstly, as the founder of the country’s first social media platform, then
as an award-winning ICT professional within the banking sector and, more recently, as the CEO of
leading fintech LUXHUB.

Jacques Pütz    CEO    LUXHUB

What is the story of LUXHUB and how would you In 2019, LUXHUB was recognised as the EU’s second largest Open

describe the company’s journey to Open Banking? Banking Platform at EBA Day and we have twice been named

LUXHUB was founded by 4 leading Luxembourgish banks to act as Luxembourg’s Startup of the Year.

an Open Banking accelerator, providing mutualised solutions that

enable institutions to thrive within the evolving financial landscape. What problems does LUXHUB solve? Could you
please provide more details about your products,
Compliance is the cornerstone of Open Banking and where the offerings, and solutions?
LUXHUB journey began, with the EU’s Revised Payment Services The main challenges of Open Banking fall into three main areas –

Directive (PSD2) providing both an opportunity and a stern compliance, connectivity, and collaboration. As mentioned above,

compliance challenge for European banks. the first major compliance challenge was PSD2; more recently,

we have developed a turnkey solution for Central Electronic Data

Retrieval System compliance in relation to AML5.

  Built on compliance and

driven by innovation, LUXHUB By providing an expert mutualised solution for such issues, we

enable financial institutions to securely and efficiently achieve

acts as the connective tissue
compliance – and, in doing so, smooth the path to Open Banking
for enhanced financial services adoption.

throughout Europe, spearheading

In order to address the second challenge and provide accelerated
a collaborative path to Open
connectivity to the opportunities that lay beyond Open Banking
Banking. compliance, we developed LUXHUB One – a single integration layer

that provides secure access to multiple PSD2 APIs (regardless of

their implementation standard).

Having successfully supported a large number of financial

institutions throughout this initial compliance journey, LUXHUB This provides the basis for enhanced Open Banking-related

began to look to the future and evolve our product offerings to customer services and has already been adopted by Luxembourg’s

help advance Open Banking connectivity and collaboration, with biggest bank, Spuerkeess – a move that has enabled them to

the ultimate aim of championing innovation and value addition become the first Luxembourgish bank to offer account aggregation

within the sector. (AIS) and payment initiation services (PIS). ➔

12 Global Open Banking Report 2020  |  The Ambitious Path from Open Banking to Open Finance
 WE CONNECT YOU

The final challenge in our framework relates to the necessity of all LUXHUB is uniquely positioned within the Open Banking landscape

actors to collaborate in the ideation, development, and adoption to address the full spectrum of challenges that the sector presents.

of value-added Open Banking products and services. Traditional We have the firm foundations of the Luxembourgish banking eco­

banks, financial institutions, and fintechs must all work together in system, alongside the resource and desire to champion innovation.

order to extract optimal value from the sector.

What is foreseen for Open Finance and for LUXHUB’s

Our ambition to facilitate and promote such collaboration has led evolution over the next couple of years?
to the development of LUXHUB’s Marketplace, which will act as a What develop­ments are in store?
community for the development, promotion, and exchange of Open Open Finance will usher in an increasingly competitive financial

Banking and Open Finance API products. services sector, which inevitably leads to greater haste in the

development of new products and services. The creation of a clear

What is Open Finance and what are the benefits for vision for the role of open data and the delivery of enhanced customer

Luxem­bourg? What are the challenges and how is experience will become a crucial factor for financial institutions when

LUXHUB responding to these? it comes to attracting new customers and retaining existing ones.

Open Finance will have a much broader impact on the financial ser­

vices industry than Open Banking, bringing greater opportunity but LUXHUB is the connective tissue that empowers financial institu­

also greater challenges. A new creative environment will be esta­ tions with the foundations to thrive within the new Open Finance

blished in order to keep up with the rapid pace of digital innovation. eco­system. We not only provide all the necessary tools to comply

and connect, but also act as a catalyst for future collaboration and

Whereas Open Banking applies to payment accounts, Open Finance innovation.

could mean that savings banks, insurers, investment managers,

consumer credit companies, business lenders, mortgage lenders, Our lofty ambitions to create an impact beyond Luxembourg’s finan­

and others would all have the opportunity to implement similar inter­ cial ecosystem has been evidenced through our recently announced

faces and provide enhanced user experience. collaboration with SIX, which sees leading players from two of the

continent’s strongest financial centres connect to accelerate pan-

LUXHUB has grown from just four individuals back in 2018 to a diverse European Open Banking innovation.

team of close to 40. Our growth is testament to our initial vision, and

we continue to stay true to the philosophy of ‘built on compliance, There are many other exciting new developments on the horizon for

driven by innovation’. LUXHUB too, which you’ll need to keep a look out for. But certainly,

the future of Open Finance will be about innovation, collaboration,

and expansion.

About LUXHUB: LUXHUB emerged from the combined vision of four major Luxembourgish banks - Banque Raiffeisen,
BGL BNP Paribas, POST Luxembourg, and SPUERKEESS to become a key catalyst of the European financial industry’s
evolution towards Open Banking. LUXHUB is built on compliance and driven by innovation.

[Link]

Click here for the company profile

13 Global Open Banking Report 2020  |  The Ambitious Path from Open Banking to Open Finance
 WE CONNECT YOU

Company name LUXHUB

Company description LUXHUB emerged from the shared vision of four leading Luxembourgish banks

to become a key driver of the European financial industry’s evolution towards

Open Banking. Combining firm banking foundations with sector-leading

technical expertise, we empower financial institutions to effortlessly pursue a

path of digital transformation.

Active since 2018

Head office Luxembourg

Service provider type Open Banking enablers

API connectivity for payment initiation

API connectivity for data retrieval & value-added services on the data

Consent management

TPP checking & repository

End-user solutions and propositions

Fraud/risk/security

Bank in the box/banking-as-a-service/core banking infrastructure

Types of supported APIs / API standard Regulatory APIs (PSD2 - STET and Berlin Group, CEDR);

supported Partner APIs (exposed for business partners via a subscription model);

Private APIs (exposed for restricted consumers);

Public APIs (widely available APIs, usually royalty free).

Do you have redundancy and coverage LUXHUB is an API publishing company. As such, redundancy is insured for API

provided by multiple integrations access only, eg our infrastructure configuration supports automatic failover in all

(APIs & Direct Access)? environments at server and data centre level.

How will you handle automated refunds? Not applicable

How will you mitigate the risk of bank LUXHUB is an API publishing company. As such, we provide the technical

transactions failing? services to avoid said failures at API level while still providing all security

requirements for API access.

How will you reconcile payments Not applicable. However, logs of all transactions going through our platform are

efficiently? available for audit and reconciliation in case of demand.

14 Global Open Banking Report 2020  |  The Ambitious Path from Open Banking to Open Finance
 WE CONNECT YOU

How it works Built on compliance and driven by innovation, LUXHUB has developed a

centralised API platform helping financial institutions take advantage of the

challenges and opportunities of Open Banking. LUXHUB’s platform acts as a

hub and enables consumers to access various types of services through APIs.

LUXHUB is the technical service provider that empowers all financial institutions

with the foundations required to thrive within the new Open Finance ecosystem.

What problem does the company solve? Through its Marketplace, LUXHUB helps financial institutions to access

innovative services in a smooth and secure way and enables fintechs to reach

the market faster. Our products and services not only provide all the necessary

tools to comply and connect, but they act as the key catalyst for future

collaboration and innovation within the sector.

Industries / target markets Financial institutions, Banks, Fintechs, Insurance companies

Business model / pricing For more details, please contact our sales team.

Founder(s) BCEE Spuerkeess Luxembourg; BGL BNP Paribas, Raiffeisen Banque, POST

Luxembourg

Funding rounds and investors In early May 2020, LUXHUB announced an additional EUR 7.4 million investment

from our four founder banks, cementing our position as one of Europe’s leading

Open Banking fintechs.

Geographical coverage (operational areal) Europe

Technology On premise containerisation and orchestration

Software language eg Java, python, PHP, Scala

Software developement tools Axway API Management, Spring Boot, Spring Cloud, Gatling, Kubernetes, Istio,

Hashicorp Vault, ELK stack, Jaeger, Prometheus, RedHat SSO

When was the core technology developed 2018

Partners Availability upon request

Customers / case studies More than 40 European Financial Institutions are amongst our clients.

Awards Luxembourg Startup Award 2019, Luxembourg Startup award 2020

Contact +352 288 076

Website [Link]

For the complete company profile please click here

15 Global Open Banking Report 2020  |  The Ambitious Path from Open Banking to Open Finance
Open Banking
Accelerator

Comply Connect Collaborate

Built on compliance, driven by innovation.

LUXHUB provides the connective tissue for enhanced
financial services, spearheading a collaborative path
to Open Banking.

ww w. luxh ub. com

DISCOVER MORE

w: [Link] e: info@[Link]
p: +352 288 076

Innovation imposes collaboration

 BCG
API Monetisation: Making a Success of Open Banking

About Kunal Jhanji: Kunal Jhanji is a Partner in the London office of Boston Consulting Group
and is part of BCG’s Transaction Banking and Payments Management Team. With over 10 years of
experience in the UK, Europe, and International markets, Kunal spends much of his time supporting
banks, core payments providers and non-bank clients (merchants, fintechs) around payments topics,
Open Data/Open Finance, and other regulatory matters. You may contact the author by e-mail at:
[Link]@[Link]

Kunal Jhanji    Partner    BCG

As the API economy has gathered momentum across industries and implementation is anything but. There are germane concerns around

sectors, the financial industry has been a relative laggard. Online retail both secure, controlled access to data and its exchange with third

and bigtech platforms have taken a lead, while banking and other parties. Market participants and stakeholders (including regulators)

financial organisations have proceeded relatively cautiously, thinking are also mindful of not overheating the system with an unmanageable

carefully about their strategies for both internal and external access load, and have imposed restrictions around how, and how much,

deployment and focusing on how best to reap commercial benefits market participants can access digital interfaces. For Open Banking/

from the API economy. In that respect, regulators have a key role to Open Finance to become relevant, commer­cially successful, and

play - standardisation of open APIs is likely to be a key condition of deliver for regulators and customers, participants need to find ways to

success. Conversely, a lack of common standards will hinder progress benefit from the API economy. API monetisation is the first step in

and increase the burden of delivery. Both banks and non-banks the right direction.

have spent significant sums to comply with Open Banking regulatory

requirements (PSD2 in Europe). There is now increased pressure, Regulators’ dilemma

on banks in particular, to deliver returns. There is also a recognition Regulators across the globe have taken different views on commer­

that if services and propositions are to become attractive to cialising APIs. While in the UK and Europe, access is free (though

customers, the perimeter of in-scope data and products needs to go restricted in frequency), Brazilian regulators are exploring a frame­

beyond that specified by regulation (current accounts, savings, work of API pricing and restricted frequency for both banks and

some lending products). As a result, there is growing momentum non-banks. Both models have benefits and challenges:

behind the concept of Open Finance, which would allow products • Free access. As free access is seen as a compliance-first exercise, it runs

such as mortgages, investments, and pensions to form part of the risk of cultivating a lowest common denominator outcome for API

an extended perimeter of data sharing and exchange through functionalities and capabilities. On the flip side, it fosters compe­tition

dedicated interfaces such as APIs. An expanded perimeter would and allows new players to emerge — providing there is a suffi­cient

allow banks to tap into the more lucrative product areas of core level of API standardisation to create one-to-many access.

lending and investments, boosting commercial returns. Additionally, • Price-per-call. Given they view APIs as redeemable investments

non-bank players (fintechs and others) would benefit from a broader that can be used to develop more nuanced customer services,

pool of data to fuel innovation and create new services — a win- players may be incentivised by a price-per-call model to develop

win situation for all parties. On the payments side, the work of functionally rich offerings (beyond the quota). However, this

the European Retail Payments Board (ERPB) on the SEPA API approach may negatively impact startups or the growth of smaller

Access Scheme provides valuable insight into the challenges players, and though pricing is not expected to be prohibitive,

and potential solutions that are likely to play a key role in kick- regulators should be mindful of the impact of pricing on potential

starting commercialisation. While the concept may appear simple, outcomes. ➔

17 Global Open Banking Report 2020  |  The Ambitious Path from Open Banking to Open Finance
 Markets and regions will determine which regulatory model to deploy, • Establish a vision. Beyond the sharing of APIs, players need to

but the market needs to be proactive in creating a commercial have a clear vision of how to leverage associated data, services,

solution that works for all. Regulators have a responsibility to enable and partnerships. Surprisingly, the majority of participants have

a working ecosystem, but players must take it to the next level, and treated vision-setting as a second-order priority (after compliance).

API monetisation will be crucial in doing so. • Be bold. Market participants should be bold in innovating to trans­

form the business model — building on external data sources,

Monetising APIs underpinned by trust in market infrastructure.

APIs can transform the customer experience, business models,

and revenue potential, as demonstrated by the payments industry. Meeting these conditions can lead to beneficial API monetisation

The growth of the Payments-as-a-Service model (PaaS) has made across diverse forms and structures:

a huge difference to both merchants and payments players. Software • API-as-a-service. Pricing per service can enable better customer

providers are using API platforms to offer payments and related experiences and pathways, including customer onboarding (KYC,

services and are generating an increasing proportion of their AML, ID&V) and data aggregation. This can also be extended to

revenues from non-software led solutions (payments, value-added internal business units to regulate processes, create better customer

services). A BCG survey of leading software vendors (both horizontal and business data visibility, and generate incremental revenue

and vertical) suggests that 60% of providers believe that their share opportunities (or enable cost take out).

of payments and value-added services will increase over the next • Ecosystem enhancer. Market participants can share and consume

five years. Recent market activity around M&A and partnerships APIs to significantly enhance the service and customer propo­

(Visa-Plaid, Mastercard-Finicity, PayPal-Tink) demonstrates that the sition. This will generate more revenues through cross-sales and

development of a strong proposition and excellent use cases for partner­ships (referral models, revenue share).

businesses and consumers, leveraging Open Banking/Open Data, • Harmonious co-existence: Players can create bolt-on capabilities

can potentially boost revenues. through open API structures, either via bilateral partnerships or

carefully designed entry mechanisms for third parties, leading to

If banks and other TPPs are to benefit from investment in APIs to date, services that significantly enhance the total addressable market

they need to put in place a strategic participatory framework, which is and increase customer lifetime value.

initially more important than monetisation models. That means they

should: The options for API monetisation are almost limitless. Momentum

• Build trust. All parties need to establish a trust mechanism to remove created by Open Banking is a good starting point, but further inno­

barriers to innovation. This trust should be built on the principle of vation will be critical to both transform the way customers consume

reciprocity and achieving the common goal of positive customer out­ services and to generate incremental (and in some cases significant)

comes. A scheme to create a trust framework could be formulated revenues.

in a specific market/region (for example, the ERPB SEPA API Access

Scheme).

About BCG: Boston Consulting Group partners with leaders in business and society to tackle their most important
challenges and capture their greatest opportunities. BCG was the pioneer in business strategy when it was founded in
1963. Today, we help clients with total transformation—inspiring complex change, enabling organisations to grow, building
competitive advantage, and driving bottom-line impact.

[Link]

18 Global Open Banking Report 2020  |  The Ambitious Path from Open Banking to Open Finance
 Payments Solved
The Paypers interviews Nilixa Devlukia, founder and CEO of Payments Solved, to learn more about payments and the journey

to Open Banking, Open Finance, and Open Everything

About Nilixa Devlukia: Nilixa is a former regulator and an experienced regulatory expert and lawyer
with a Masters in European Competition Law. Nilixa works with industry, regulators, and legislators
to drive forward changes for a payments and open banking landscape that is secure, transparent,
and inclusive.

Nilixa Devlukia    Founder and CEO    Payments Solved

How would you describe the journey to Open Banking The risk and challenges associated with Open Finance are similar to

and Open Finance? those of Open Banking but with a great focus on data access, the

Think about Open Banking as an IT project, for a single organisation, misuse of data, appropriate consumer protections, and a growing

such a project would be difficult and challenging. Now put that in need to building trust with users, as consumers don’t have a good

a context in which the entire banking industry across Europe is understanding of how their data is used and what the benefits of

asked to take forward the same IT project, in the same timeframe, Open Banking and Open Finance are.

and to the same delivery date! The journey to Open Banking has

been challenging, layer on top all the diverse regulatory issues. I firmly believe that data access should be a regulated activity with

In that context the industry has done well to deliver a working attention given to onward data sharing; checks and balances are

API infrastructure. needed to make consumers feel comfortable with using data sharing

services.

  Customer protection and What infrastructure and standards are needed to

customer choice are key elements support Open Finance?

to be addressed for a richer The UK Finance Open Banking Future State Report outlines

recommendations for a proposed model to support the future

payments’ ecosystem, also provision of Open Banking services. It is definitely timely to start
necessary is a greater focus on the industry debate on the future use of this infrastructure and

consumer protections in data how it brings value to a wider ecosystem. One of the fundamental

questions to be addressed very early on in that conversation is

sharing to build confidence in ‘How is this new ecosystem, this Nirvana of open finance and open
the new ecosystem everything, going to be funded?’

Early consideration needs to be given to the funding model as we

However, Open Banking is still fragmented, lacking standardisation, move forward into Open Finance to ensure that the needs of the

and still waiting to realise its full potential. Open Finance will build emerging ecosystem and all stakeholders within the ecosystem are

on the Open Banking principles. I believe that it is only going to appropriately meet. ➔

reach its potential if there are regulatory principles in place to help

shape the desired outcomes. I also take the view that we need a

better regulatory framework on availability and performance of APIs.

19 Global Open Banking Report 2020  |  The Ambitious Path from Open Banking to Open Finance
 Fragmentation, is in my view, a barrier to entry and so it is impor­ recurring payments. PISP payments are basically single immediate

tant that there to be a common framework and a common set of payments and that takes the richness out of the Open Banking/

standards in the UK and also across Europe that mitigates this Open Finance ecosystem because we do a lot more than just make

issue; a regulatory framework is probably the best method to single immediate payments.

achieve this goal. The regulator has a crucial role to play; a vital

success factor for Open Banking has been strong impetus from the How is Covid-19 impacting Open Banking payments?
regulator and a suitable framework for Open Finance will support There has been a massive uptake in digital financial services and

industry to create standards and the infrastructure that will drive an increase in the use of electronic payments.

innovation and competition.

I believe that interaction with financial services in a digital format is

It is also vital to continue the collaboration between banks, fintechs, going to be supportive of Open Banking services because consu­

regulators, consumer business organisations to help promote a mers and businesses have become more comfortable using and

vibrant Open Finance ecosystem. interacting with financial services in that way.

How is the payments evolution going to impact the Over the last few months, companies have launched new initia­tives

way Open Finance is going forward? to support the challenges that we’ve seen in society by using and

Customer protection and customer choice are key elements to leveraging Open Banking services for consumers and SMEs, services

be addressed for a richer payments’ ecosystem together with a that allows a relative, friend, or neighbour to send a ‘request-to-

greater focus on consumer protections in data sharing; this is key pay’ to someone else to help them shopping for groceries, supplies,

to building confidence in the new ecosystem and new services. and services that help vulnerable people better understand their

finances.

For payments we have the Direct Debit Guarantee and for card

payments we have section 75 and chargebacks. For Payment Initia­ Furthermore, alternative lenders helped by delivering funding to the

tion Service (PIS), we only have the mandate regarding misdirected SME sector as part of the government support schemes, with Open

payments, there is no guarantee or consumer protection that Banking data playing an essential role in the analysis of the lending

brings the same level of comfort as for the other payment mecha­ decisions for these companies.

nisms. Now is the time to holistically consider what is the right

payment protection for PISP payments. Despite all the challenges that the pandemic has brought, we noticed

an increasing use of technology and industry collaboration for that

Secondly, we must have the functionality of all payment methods greater good and that will, I hope, continue as we move to Open

in all channels, customers need choice and the flexibility of variable Finance.

About Payments Solved: Payments Solved offers strategic advice on regulatory and policy issues. We advise firms and
business leaders on how the law, regulation and the decisions and approaches of governments and regulators can impact
their strategies.

20 Global Open Banking Report 2020  |  The Ambitious Path from Open Banking to Open Finance
 Plug And Play
Banking Innovation, Open Banking, and What We’ve Learnt from the Great Pause

Gabrielle Inzirillo  Madeline Wallace  Poey Lam 

Director, Fintech Marketing Manager Program Manager
(EMEA)  Plug And Play Plug And Play
Plug And Play

About the Amsterdam team: Gabrielle Inzirillo, Madeline Wallace and Poey Lam of Plug And Play Amsterdam located
at Cumulus Park, an initiative by ING Group, support global corporations in scouting and implementing best in class
technologies through pilot driven programmes with tech startups. In addition, they contribute to the ecosystem by
deploying venture capital and sharing best practices on innovation processes.

The Great Depression, The Great Recession, and now The Great

Pause. Though accurate, the sleepy lethargy evoked by the latter

does little to capture the sudden, grinding halt of the economy as

close to two-thirds of the human population was made to shelter

in place.

The financial industry is notoriously resistant to cultural change,

adapted by necessity, with millions of staff members diligently

grappling with the limitations of remote working. Overloaded VPNs,

obstructed IT hotlines, and temperamental video conference calls

became part and parcel of the working experience. Had the pandemic

hit five years earlier it certainly would have spelled disaster for the

open innovation ecosystem as the bridges by which startups connect ‘Digital banking projects were prioritised to better support routine
to financial institutions evaporated overnight. However, since then, banking tasks and ongoing pilots with startups were maintained
institutions have invested time and resources into building concrete over the period. New engagements have, however, been halted
processes to trial and implement external technology solutions which as uncertainty has impacted budgets, and strategic plans for the
allowed for a satisfactory if bumpy transition to remote piloting. next two years have been reshuffled to consider the possibility of

extended and even repeated stay at home orders. We’re seeing a

Plug And Play, a seed stage venture capital company and innovation renewed commitment within innovation functions of banking groups
platform headquartered in Silicon Valley, whose portfolio companies to fast track digital functionalities for clients and they’re looking to
include PayPal, Lending Club, Honey, and N26, among others, works do it either internally or by partnering with ready-made startup
with over 400 leading corporations across its global footprint of 30 products. As Open Banking and the “APIfication” of financial services
locations. Its fintech vertical connects startups to some of the leading has been an ongoing trend over the past three years, financial
financial institutions such as BNP Paribas, Caixabank, Deutsche institutions have buckled down to accelerate API stores or validate
Bank, ING, and UniCredit, among others, to explore investment and partnerships.’ says Gabrielle Inzirillo, Director of Fintech EMEA at
implementation opportunities. Plug And Play.➔

21 Global Open Banking Report 2020  |  The Ambitious Path from Open Banking to Open Finance
 In fact, Open Banking, and by extension banking-as-a-service, is It can be said that differences in global Open Banking trends stem

a global trend with regional differences caused by local regulatory from whether the movement is regulation-driven, like it is in the

infrastructure and cultural tolerances to digital features. UK and the European Union, or market-driven, such as in China.

Chinese financial groups are in the unique position of facing fraught

In North America, a number of startups are building suites of auto­ competition from the internet giants such as Alipay with its self-

mated services in order to allow businesses to become payment contained ecosystem on WeChat. Lax data privacy regulation

facilitators and manage their end-to-end payment experience. and no standard guidelines mean that banks can approach Open

Similarly, a reversal of the Open Banking experience is trending Banking in their own manners, brokering private-public partnerships

where local banks and credit unions are white-labelling their to gain new clients and extract customer insights. Asia Pacific in

services to allow commercial brands to offer personalised financial general has had a fragmented response to Open Banking, with

products to their own customers. proactive regulators in Singapore and Australia who suggest best

practices but leave actual implementation to the market, and South-

However, Open Banking guidelines are far from being standardised eastern countries who have by and large stayed quiet on the subject

amongst countries and regions. In Brazil, the discussion on regu­ leading only the largest banks to take initial steps towards opening

latory guidelines has been ongoing since 2018 and it’s only recently, their APIs to third parties.

in the first quarter of 2020, that the Central Bank released standards

that are likely to invigorate those startups that are tackling the ‘The Great Pause has been a distinct reminder to retail banks that

challenges of building interoperability amongst large Latin American “build it and they will come” is simply not a resource nor time efficient

banks. guiding motto. As customers were forced to use their bank’s digital

channels during the lockdown period, it has been a tipping point for

many as they consider switching to challenger banks in their search

for a seamless experience. With a backlog of internal functions

pending development for their native apps, it simply seems a

strategic bet to open up APIs and allow clients to have varied

experience using third party applications without taking the drastic

step of changing banks.’ says Gabrielle Inzirillo.

Catalysed by a challenging environment, Plug and Play strives to

support its fintech partners through these unprecedented times

as they seek to develop and nurture a fully fledged Open Banking

ecosystem for their clients.

About Plug And Play: Plug And Play is an innovation platform. We run over 50-industry themed innovation programs
in +25 cities around the world every year. We supercharge the innovation of over 450 industry leading corporations from
every continent. We are also a top global VC firm and invest in over 250 startups per year globally.

[Link]

22 Global Open Banking Report 2020  |  The Ambitious Path from Open Banking to Open Finance
 INNOPAY
EPI: Paving the Way for Future Bank Relevance, and Not Just Through Payments

About Mounaim Cortet: Mounaim is an experienced strategy consultant, fascinated by the nexus
of business strategy and the rising opportunities of regulation, data, and technology. Mounaim leads
the strategy team at INNOPAY and works on innovation challenges covering digital payments (PSD2),
digital identity, and data sharing (Open Banking) for different organisations operating in the financial
ecosystem and other industry sectors.

Mounaim Cortet    Senior Manager Strategy    INNOPAY

Sixteen major Eurozone banks have come together in the European and focus on protecting the business case for payments (which

Payments Initiative (EPI) to launch a new payment system aimed at is also supported by the European Commission’s decision not to

taking on rival card schemes and the threat posed by Chinese and impose further legislative measures on interchange fees for now),

US bigtech firms. Although previous pan-European collaboration the new battle revolves around identity and data – and even more

projects (e.g. Monnet, Eaps, Payfair) have not been perceived as a value is at stake.

great success, the mounting competitive pressure and challenging

market dynamics are now driving banks back together. EPI is seeking Need for new type of trust infrastructure in Europe
to develop a unified payment solution for consumers and merchants For banks to reap the full benefits of the data economy, Europe needs

across Europe, including a payment card and digital wallet, covering a new type of trust infrastructure based on digital trust. This will

in-store, online, and person-to-person payments as well as cash allow us to move away from the closed, institutional trust-driven

withdrawals. INNOPAY shares the view that EPI is a worthy step approach that is ‘forced’ upon users by the bigtech firms. The key

towards strengthening Europe’s payments landscape, providing that compo­nents of such an infrastructure are depicted in Figure 1.

it leverages existing best practices where possible and receives

the full and continued support of all relevant banks. However, the

initiative seems to have emerged as a result of political pressure

from the European Central Bank’s call for more collaboration,

rather than out of a desire to pursue true customer value. That is,

compared to the solutions available today, it is not likely to funda­

mentally improve the way people actually pay at the point of inter­

action, nor will the initiative in its current form be an answer to banks’

quest for future relevance. In essence, the EPI collaboration is a Figure 1: Four key components of the digital trust infrastructure,

good start, but the battlefield for banks’ future relevance is much INNOPAY 2020

broader than payments alone. If anything, the banks involved should

leverage this collaboration platform and momentum to shape their In the digital trust infrastructure, common standards for data rights

future relevance. That is why we urge the banks involved in EPI to and obligations are embedded in the very fabric of the internet

take a broader view of digital transactions. In other words, in addition (‘transactional internet’). A federated and trusted digital identity

to payments, banks need to actively address the topic of digital is fundamental in such an infrastructure. Connected to this digital

identity and seamless data sharing. This will not only drive the identity is a consent and authorisation mechanism that enables end

creation of truly value-added services but will also strengthen their users to control their money and data. An electronic interoperable

competitive position. While we understand the EPI’s current scope payments network and data exchange layer can then be built on ➔

23 Global Open Banking Report 2020  |  The Ambitious Path from Open Banking to Open Finance
 top of consent. This approach enables data availability and accessi­ (SCA) mechanisms, banks can already play a key role in giving

bility at scale to power new applications in payments and the broader consumers control of personal data in other sectors. After all,

data economy. This leads to better protection of user data and privacy, consumers must be identified with sufficient reliability if they are to

greater innovation at scale, and creation of new business models a irrefutably authorise other parties to use particular data (which is why

nd value exchange, thus safeguarding banks’ future relevance. digital identity is positioned as the core building block in Figure 1).

Furthermore, the mandatory opening up of banks under PSD2 has

Banks are well placed to create the digital trust enabled them to gain experience in obtaining and managing autho­

infrastructure risations from consumers. Each authorisation must be recorded

‘What makes banks so well placed to create the digital trust infra­ securely and reliably so that the consumer always has an up-to-date

structure?’ I hear you ask. This is due to three key reasons: positio­ overview of the parties which have been given access and, if desired,

ning, experience, and assets. can also withdraw their consent for that access. This experience,

combined with digital identity, is an important asset that can be

Firstly, banks have always been positioned as a ‘money custodian’. deployed beyond the confines of payments and banking. By turning

Becoming a ‘data custodian’ (in a much broader sense than they this experience into services, banks can take a significant step

already are) in the digital economy would be a natural extension of towards facilitating the data economy in other sectors.

this role. More importantly, while players from other industries are

still winning trust – especially among the younger generation – banks Now it’s your turn
have a head start that they should be able to leverage. The broader We all know that developing a scheme for a digital trust infrastructure

public are more likely to accept banks than other players in this role. requires collaboration – initially with banks in the pioneering role as

outlined above, followed by the subsequent involvement of other

The second factor is experience. As data is becoming increasingly private-sector operators. In addition to shaping the collaborative

valuable in the digital economy, there is a strong rationale to apply domain of the digital trust infrastructure, banks will also need to

‘digital payment-like’ governance and mechanisms to ensure trust in develop a clear view of their individual competitive position, strategy,

the envisioned digital trust infrastructure. Banks have the necessary and value proposition within such a network. The banks involved in

ex­perience with schemes to turn the digital trust infrastructure into EPI have already cleared the first hurdle by agreeing to collaborate

reality. on payments. They now need to shift up a gear to truly strengthen

European banks’ position in payments and the data economy by

Thirdly, banks have the required assets. Besides having an exem­ developing innovative services that add true customer value. It is

plary role, banks are also very proficient at determining consumers’ time for banks to work together to create a digital trust infrastructure

digital identities due to their Know Your Customer (KYC) obligations. and reinforce their position as trusted data custodians.

Thanks to these digital identities and strong customer authentication

About INNOPAY: INNOPAY is a consultancy firm specialised in digital transactions. We operate in the areas of data sharing,
digital identity, openness, cyber resilience, and digital transformation. Our aim is to help companies, organisations, and
consortia across Europe to identify and seize opportunities in a digital world in which everything is becoming a transaction.
Together with our clients, INNOPAY experts develop innovation strategies, co-create new products and services, and
digitally transform businesses. Our headquarters is located in Amsterdam.

[Link]

24 Global Open Banking Report 2020  |  The Ambitious Path from Open Banking to Open Finance
 INNOPAY
Why Banks Must Become the Data Custodian in the Data Economy

About Mounaim Cortet: Mounaim is an experienced strategy consultant, fascinated by the nexus
of business strategy and the rising opportunities of regulation, data, and technology. Mounaim leads
the strategy team at INNOPAY and works on innovation challenges covering digital payments (PSD2),
digital identity, and data sharing (Open Banking) for different organisations operating in the financial
ecosystem and other industry sectors.

Mounaim Cortet    Senior Manager Strategy    INNOPAY

The rising importance of digital identity, consent management, and Ultimately, the role of data custodian will help to secure the future

data sharing has created a ‘Blue Ocean’ market for banks. I believe rele­vance of banks in the data economy in several ways, including by:

that they now have a unique opportunity to strengthen and truly safe­ • Offering better protection of user data and privacy;

guard their relevance in the data economy. But they need to start • Driving innovation in digital transaction services (payments and

taking decisive action right now in order to demonstrate that they beyond);

can provide the necessary trust. • Stimulating the creation of new business models and monetisation

options;

The European Payments Initiative (EPI) is an important collaboration • Effectively shielding them against threats coming from Chinese

platform and a clear step in the right direction. However, the banks and US bigtech firms.

involved in the EPI currently appear to be focused on protecting the

payments business case in Europe. While this is understandable, such

defensive tactics in the ‘Red Ocean’ payments market is not really

a viable long-term strategy. The good news is that, as we see it, the EPI

also paves the way for strengthening the banks’ future relevance –

beyond payments alone.

The opportunity for banks to secure their future

relevance
Regulatory reforms such as PSD2, Open Banking, GDPR, and develop­­

ments such as the EU Data Strategy are democratising access to Figure 1: Banks acting as data custodian in the data economy

data assets across the whole economy. In this changing world, banks The shifting data-benefit balance

now facilitate only a fraction of a customer’s (daily) digital interactions

and transactions. However, as money custodian, banks are ideally In a changing world in which data is emerging as the new global

placed to expand their role into the data domain. In other words, we currency and digital transactions are at the heart of everything we

believe that banks can – and should – lay claim to the role of ‘data do, customers are becoming more aware of their data assets and the

custodian’ in their customers’ daily lives by engaging in a cross- value they represent; they want to leverage their data beyond the

sectoral data ecosystem (see Figure 1) – just as they do in their current platforms and organisations that store it in order to tip the ‘data-benefit

role in payments. balance’ back in their favour. ➔

25 Global Open Banking Report 2020  |  The Ambitious Path from Open Banking to Open Finance
 This is driving customer demand for increased transparency So, bank executives face a choice. They can either ignore the digital

and control over their data assets – which is also known as ‘data transaction revolution and stick to their existing beliefs, continuing

sovereignty’. to invest in payments only and competing head-on with bigtech

and other players in a Red Ocean market, or they can embrace the

As a result, we are seeing an emerging need for a data custodian- above truths to seize the Blue Ocean opportunity, expanding their

like role to ensure seamless and secure access in a trusted and role as money custodian into the data domain to secure their future

well-governed ecosystem which revolves around digital identity and relevance in the data economy.

consent. Trust provision will be a key functional domain. The data

custodian will meet the growing desire among customers to have Becoming a data custodian in the data economy is a longer-term

a single point of control for their data assets, including by giving play; it requires bank executives to embark on strategic initiatives

customers the required tools to exercise control over them. In addition, that do not necessarily contribute directly to short-term regulatory

as customers become accustomed to controlling and sharing their compliance and/or ROI. However, doing nothing is not an option as

data on their own terms, the increased trust will open up new the true battle for relevance revolves around digital identity, consent,

oppor­tunities to engage in ways that create customer-centric data and data sharing – where even more value is at stake than in payments.

monetisation models and a fair distribution of the benefits. As bigtech firms and other providers are already making inroads into

these areas, there is no time to waste.

The three key truths shaping the future relevance

of banks Leaders at any bank wishing to participate successfully in this new

Against the backdrop of the current transformation, we believe that environment will need to review their strategies as well as their

the future relevance of banks will be shaped by the following three techno­logical and operational capabilities. Banks will have to recog­

truths: nise that putting customers in control of their money and data is

1. Although important, digital payments – and related collaborations imperative for future strategic and commercial relevance.

(e.g. EPI) – are not sufficient for banks to remain relevant in a world

in which everything is a digital transaction;

2. Banks are ideally placed to unlock the potential of the open data

economy by creating a digital trust infrastructure and become

society’s everyday data custodian;

3. In an open data economy, a bank’s digital identity and consent

management services are key in facilitating trusted financial and

non-financial digital transactions in all areas of society.

About INNOPAY: INNOPAY is a consultancy firm specialised in digital transactions. We operate in the areas of data sharing,
digital identity, openness, cyber resilience, and digital transformation. Our aim is to help companies, organisations, and
consortia across Europe to identify and seize opportunities in a digital world in which everything is becoming a transaction.
Together with our clients, INNOPAY experts develop innovation strategies, co-create new products and services, and
digitally transform businesses. Our headquarters is located in Amsterdam.

[Link]

26 Global Open Banking Report 2020  |  The Ambitious Path from Open Banking to Open Finance
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Open Banking Developments Across
the Globe

Initiatives across different jurisdictions have emerged to make Open Banking/Open Finance a reality, ranging from

regulatory requirements to market-coordination and industry-led initiatives.

In this fourth edition of our Open Banking Report, we analyse how Open Banking has evolved around the world,

by developing insight into the Open Banking initiatives in key markets including the UK, US, Europe, Asia, Asia-Pacific,

Latin America, South-Asia (India), Africa (Nigeria).

 Open Banking Implementation Entity
Open Banking Is the Stepping Stone to Consumer-Directed Financial Services

About Imran Gulamhuseinwala: Imran Gulamhuseinwala OBE is the Implementation Trustee for
Open Banking Implementation Entity (OBIE). In his role, he has oversight and responsibility for
Open Banking’s development and delivery of the common technical standards underpinning the
Competition and Market Authority’s (CMA) Open Banking initiative.

Imran Gulamhuseinwala    Implementation Trustee    Open Banking Implementation Entity

Open Banking has been a huge success in the UK. A key component Accordingly, we are hugely supportive of the UK government’s

of its secure, success­ful implementation thus far, and its thriving, recently announced Payments Landscape Review, particularly

growing ecosystem has been the stewardship that exists. As such, seeing how the transformative potential of Open Banking technology

regulation and oversight have always been the watchwords for in payments was acknowledged. Furthermore, as part of the

Britain’s Open Banking implementation, with the Competition roadmap, we plan to build on the vital work we have carried out

and Markets Authority (CMA) establishing the Open Banking around user protection in payments. Our aim is to ensure that Open

Implementation Entity (OBIE) to ensure its delivery. This has enabled Banking users will not only continue to enjoy consistently simple,

unprecedented collaboration among banks, fintechs, regulators, easy-to-use authentication experiences, but will naturally gain a

alongside consumer and business representatives. Currently, there better understanding (and therefore complete comfort and confi­

are 184 authorised third parties in various stages of enrolment into dence) in how their data is used and shared.

the ecosystem and on the journey to bring Open Banking enabled

propositions to market. The logical next step for Open Banking is of course Open Finance,

where users can access all their financial data, such as savings,

From our perspective, and that of the CMA, we are confident that mortgages, insurance and pensions, in a simple and secure way.

Open Banking is going to continue to grow and deliver on its potential This would allow them to see all their financial relationships in one

to rebalance the market in favour of the end user. As such, over place, leading to more personalised and therefore more beneficial

the next two years, we expect more and more people to encounter life and purchasing decisions.

this initiative as more third parties continue to bring new, exciting

customer-driven Open Banking enabled propositions to market. However, it is vital that we build upon the lessons learnt from the

rollout of Open Banking and utilise our existing learnings, assets,

As part of the process to secure the future success of Open Banking, and capabilities, to realise the transformative potential of Open

in May 2020, the CMA signed off on the final implementation stage Finance. In this way, we can improve the existing infrastructure to

for the programme. Under this roadmap, we will continue to work make this first stage of transformative change possible.

with the banks to improve the performance of Open Banking tech­

no­logy, thereby ensuring that users can access their data in a This includes learning from our experiences on how incumbents

more timely and reliable fashion. We will also work to increase can control implementation costs; the need for central ecosystem

its functionality, especially around payments, by enhancing the support; as well as the benefits of common authentication mecha­

standards to make it easier to pay and be paid. nisms. ➔

29 Global Open Banking Report 2020  |  Open Banking Developments Across the Globe | UK
 Moreover, based on our own experiences over the last two years, we

also believe that Open Banking can provide vital lessons for open

finance by ensuring that a harmonised framework is constructed

under a comprehensive and effective regulatory structure. Creating

this single regulatory structure will be important in guaranteeing

industry participation in a variety of sectors, just as the Open Banking

mandate in the UK has unlocked the potential of data held by many

incumbent banks.

As is the case with Open Banking we also believe that open finance

should make space for competition and innovation beyond the

regulatory minimum. Open Banking enables the development of

‘premium APIs’, which are the products, services, and platforms

which use Open Banking technology, but sit outside of its direct

regulatory framework. These premium APIs, when fully developed,

can crucially enable Open Finance by allowing data sharing

practices to be effectively applied to a plethora of new sectors.

The progress being made in the banking sector, as far as the early

stages of Open Banking are concerned, has been palpable, and

we continue to see that growth across the ecosystem with the

development of new products, the launch of new providers, and

the forging of new collaborative partnerships. While the process

of implementing Open Banking in the UK is not yet complete,

we are on the cusp of the next major development in the sector,

where the market will genuinely work for everyday people and small

businesses. Building on the success and learning from the lessons

of Open Banking, Open Finance represents a future for user-driven

financial services that we can all look forward to.

About OBIE: The Open Banking Implementation Entity was created by the UK’s Competition and Markets Authority to create
software standards and industry guidelines that drive competition and innovation in UK retail banking.

[Link]

30 Global Open Banking Report 2020  |  Open Banking Developments Across the Globe | UK
 Bank of America
The Paypers speaks with Ad van der Poel, Co-head of Product Management for GTS EMEA at Bank of America, about the Open

Banking and Open Finance opportunities for consumers, corporates, and SMEs

About Ad van der Poel: Ad van der Poel is the Co-head of Product Management, Global
Transaction Services for Europe, the Middle East, and Africa. In this role he is responsible for the
development and deployment of payments, receivables, FX, liquidity, channels, and information
services for both corporate and FI clients across the region.

Ad van der Poel    Co-head of Product Management, Global Transaction Services for EMEA    Bank of America

What are the benefits of Open Banking for consumers, As a result, corporates could initiate an invoice payment directly

corporates, and SMEs? through an ERP system or an accounts payable system and no

From a corporate perspective, the main opportunity is connecting longer have to use a bank’s online banking platform or host to host

with the bank directly, as an alternative channel, or connecting with connections. This will result in a more integrated way of working

the bank via a third party in the context of consumers and SMEs. together and we are continuously supporting our clients’ needs

Other opportunities are increased operational efficiency, trans­ through Open Banking in areas such as payments and collection.

parency, improved user experience, and the ability to combine data

from different bank accounts in one place. How would you describe the journey from Open
Banking to Open Finance?
Corporates have benefited from the deployment of API technology Open Banking, primarily through payments and bank accounts

to create a direct connection as an alternative channel, but they do statement information, is moving to Open Finance as it aims to

not necessarily leverage third parties to connect to their banking extend the scope of data sharing to include savings, investments,

environment. We expect corporates to leverage third parties as insurance, or pensions. This shift will give broader visibility of

well, the difference being that in the corporate world, we would financial products and enable functionalities such as total wealth

be talking mainly about ERP systems or treasury management dashboards, while providing greater actionable insight, comparison

software providers. of products and analytics not only for consumers and SMEs but

also for corporates.

For example, if you compare insurance contracts, you will have to

  The exciting thing about compare apples to apples, and you need to find a way to make that

Open Banking and Open Finance work. On the other hand, we have pension structures which are

complex data sets that need to be presented and interpreted

is how they will become integrated
accurately. This could be challenging, however we are now reimagi­
in the client’s environment, either ning how we look at data to allow us to better serve our clients.

as a consumer or a corporate, Overall, despite the great demand for data, it is the analysis, the

recommendation, and the insight that is unlocked from the data

and how it will become something
which will bring the real benefits to the clients. ➔
that is part of their daily lives.

31 Global Open Banking Report 2020  |  Open Banking Developments Across the Globe | US
 For instance, corporate clients talk about cash flow forecasting and Even though everywhere in the world we see digital and contactless

identifying certain trends, especially now with the impact of the payments increasing, in the US, checks are still widely used, although

global health crisis; supply chains are one good area to analyse to this has become less prevalent during the global health crisis.

help identify these impacts more quickly.

What is your vision for Open Banking in the future?

Another challenge is represented by cybersecurity, the risk of Open Banking presents a choice for clients on how they want to do

fraud, and how the industry and the ecosystem will adapt to it. their payments, their finance, how they want to initiate payments, to

Tokenisation is also important – in Open Banking we might end up get their information, and how they would like their information to

talking about tokenisation of the bank account number which will be presented, and with whom they would like to do it. The key thing

create a higher level of security. is that clients have a choice and therefore, we as a bank need to

make sure we facilitate all these options. While one country might

What are the perspectives for Open Banking in the do this quicker than another, if we look 15-20 years from now, Open

US? What are the drivers but also the challenges in Banking and the use of APIs will be embedded in many countries

adopting Open Banking in the US? globally.

Open Banking in Europe is driven by regulation, while the US market

is driven through competition with fintechs, and both incumbent We see a number of regions outside of Europe and the US adopting

and challenger banks. Open Banking concepts: in LATAM, with Brazil and Mexico; in

Asia and Australia, all with different approaches. Hong Kong and

In the US, people are culturally more comfortable with sharing their Japan provide guidelines to facilitate market implementation, while

credit card number than they are with sharing their bank account Singapore and China are more competition driven.

details, while in certain countries in Western Europe it’s the other

way around. Even though corporates or merchants may prefer This suggests that there is no solution that fits all, depending on the

Open Banking, the consumer may not, preferring to use a credit country, its culture, parameters, or the traditional use of payments.

card instead. In the end, all are moving in the same direction. From our perspec­tive,

that direction is the one where we provide the best service possible

Data protection is a potential issue that needs to be overcome. to our clients and continue to innovate – it’s about integrating into the

In Europe there is the GDPR regulation that protects consumers, core processes and behaviour.

while in the US, the GDPR equivalent is on a state by state basis.

Only a few states currently have data privacy laws and that may lead

to a different customer experience depending on the region.

About Bank of America: Bank of America is one of the world’s leading financial institutions, serving consumers, small
and middle-market businesses, and large corporations with a range of banking, investing, asset management, and other
financial and risk management products and services. Bank of America Corporation stock is listed on the New York Stock
Exchange.

[Link]

32 Global Open Banking Report 2020  |  Open Banking Developments Across the Globe | US
 Spiralem
The Open Banking Journey in Latin America

About Bruno Diniz: Bruno Diniz is Managing Partner at Spiralem and South America Director at
FDATA. Regarded as one of the top fintech influencers in LATAM, Mr Diniz is also a professor,
speaker, and authour of the bestselling book ‘The Fintech Phenomenon’ (not yet translated).

Bruno Diniz    Managing Partner    Spiralem

After its inception in Europe with the Payments Service Directive 2 Besides that, they are undergoing a massive transformation in their

(PSD2), and the subsequent implementation in the UK, the Open financial markets through the creation of regulatory sandboxes and

Banking movement has spread in different parts of the world, instant payments systems (like CoDi in Mexico and PIX in Brazil).

empowering financial services consumers and giving them a bigger Such movements aim to improve competition in the sector, lower

control over their data. Although different countries and companies the use of cash, foster the emergence of new business models, and

are approaching this subject in different ways, it is imperative to boost financial inclusion.

highlight the importance of a structured regulatory and technological

framework as mechanisms to enable the expected benefits of this The implementation in Mexico and Brazil
concept, reducing market asymmetries, and allowing the improve­ Even though these countries are progressing in their Open Banking

ment of financial services alternatives and experiences to the end- journey, each one is doing it on its own pace. Mexico released their

users. Fintech Law (which address a broad framework for the sector) in

2018, but the first set of secondary laws meant to establish the

The Open Banking movement has also reached Latin America, but next steps for Open Banking implementation in the country were

the degree of development on the regulatory level varies significantly released by Banxico (the Central Bank of Mexico) in March 2018

among countries. Considering the main financial markets within the and by CNBV (the National Banking and Securities Commission)

region, we can see that places like Peru, Argentina, Chile, Colombia, in June 2020.

and Bolivia are still lagging without a clear direction stated by their

local authorities. Conversations among stakeholders are happening In the meantime, Brazil took the lead in Open Banking, with the

in these countries and some businesses focused on the API economy Central Bank of Brazil announcing a public consultation regarding

are taking form as well, but this is far from the true potential of a complete this subject in November 2019 and receiving inputs from the market

Open Banking ecosystem, which can only be achieved in the region until late January 2020. It then released the Open Banking law and

with the intervention of the regulator. its implementation schedule along with CMN (the National Monetary

Council) in early May 2020. ➔

Just Mexico and Brazil have taken steps to involve their local autho­

rities in the process, following a top-down approach regarding this

matter. It is worth remembering that both countries concentrate the

majority of fintechs in the region, having clear regulations in place

addressing the functioning of most verticals in this segment, like equity

crowdfunding, P2P lending etc.

33 Global Open Banking Report 2020  |  Open Banking Developments Across the Globe | LATIN AMERICA
 The advances made by each country are described below: - P hase 2: Sharing of basic customer data and transactional

data, under the client’s consent. That is considered the basic

Mexico: A general view of the Mexican Open Banking system Open Banking feature, enabling many different business models.

was included in the Fintech Law in its article 76, but the specific Deadline for implementation: 31 May 2021.

details would be set out in further secondary laws. The initial rules

published by Banxico and CNBV in the first half of 2020 focused on - Phase 3: Payments initiation (integrated with the local instant

data about services and products offered by financial institutions in payments system, PIX) and sharing of a credit proposal forwarding

the country and includes the location of ATMs and bank branches. service. This phase enables the operation of PISPs (Payment Initiation

This stage is called ‘Open Data’. Aggregated Data by the institutions Service Providers) in the country. Deadline for implementation:

and Transactional Data of the clients will be addressed in 2021 and 30 August 2021.

no additional details were released yet.

- Phase 4: Implementation of a broader scope of data sharing, con­

Brazil: The regulation published by the Central Bank of Brazil and sidering pensions, foreign exchange, insurance, investment products,

the CMN set the rules for many aspects of the local Open Banking among others. This is considered the ‘Open Finance’ phase, like

system, such as objectives and principles, the minimum scope the one that is under discussion in the UK. Deadline for implemen­

of data and services etc. Additionally, it defined the schedule for tation: 25 October 2021.

the implementation (divided into 4 phases) and determined the

creation of a self-regulatory organism (composed by the regulator, Opportunities and next steps
representative trade associations, and an independent advisor) As the implementation in Brazil and Mexico advances, I hope

that will define governance aspects, establish technical working other countries in Latin America get inspired by this movement

groups, and vote on different aspects belonging to each of the and promote these important changes in their financial systems.

phases described below:

Considering the increasing usage of mobile technologies in the

- Phase 1: Sharing information about products and services by region and the rise of the fintech phenomenon in the recent years,

parti­cipating institutions, which include ATMs and bank branches, Open Banking has the potential to give an additional boost to

also known as ‘Open Data’ phase. It would, among other things, financial services challengers and unlock innovative business

enable the creation of enhanced product comparison tools in the models going forward. That will bring more alternatives to the end

financial market. Deadline for implementation: 30 November consumer, something critical in a region with such inequalities and

2020. low financial inclusion.

About Spiralem: Spiralem is a consultancy firm focused on innovation for the financial market, events production, lectures,
and training. We advise national and international organisations, helping them solve the challenges presented by an ever-
changing financial sector.

[Link]

34 Global Open Banking Report 2020  |  Open Banking Developments Across the Globe | LATIN AMERICA
 Kapronasia
Tracking Asia’s Progress with Open Banking

About Joshua Chong: Joshua is an analyst at Kapronasia and has experience across banking,
payments, and capital markets. Before Kapronasia, Joshua was with Morgan Stanley Equity
Research in London and held strategy and business development roles with UK-based fintechs
in the payments and asset management industries. Joshua graduated from the London Business
School with a Master of Science in Financial Analysis and holds a BBA degree from BI Norwegian
Business School.

Joshua Chong    Analyst    Kapronasia

The journey so far Promising use cases for individuals

Open Banking continues to gain pace in Asia as legislations and Along with the fanfare and excitement surrounding Open Banking,

government initiatives start to come into force. In Australia, the there are many ways that individual customers can benefit from the

Consumer Data Right Act became law on the first of July 2020, increasing interconnection and data exchange between financial

following the country’s regulatory-driven approach towards institutions and fintechs. Customers stand to gain from improved

Open Banking. As the first Open Banking legislation to address banking experiences as they can bypass clunky user interfaces

the concept of data ‘reciprocity’ (data recipients in a designated of incumbent banks and manage all their personal finances on a

sector should also be obliged to provide equivalent data), Australian consolidated fintech platform with a sleek design and responsive

regulators are in a position to set the precedent for determining what interactions. Australia-based fintech Moneytree is a front-runner in

‘equivalent data’ consists of for different sectors. Meanwhile, India, this category with a platform that stores user’s financial data from

which follows a similar prescriptive approach, has rolled out its Account different providers.

Aggregator (AA) framework to the public in May 2020. Many of

India’s largest banks are already in various stages of their Financial Customers looking to budget and save will also have even more

Information User (FIU)/Financial Information Provider (FIP) implemen­ options available. Frollo, the first fintech in Australia to receive Open

tation, and fintechs such as Onemoney and FinVu have gone live after Banking accreditation, helps customers find new ways to save

receiving their licenses from the RBI. through features such as a bill comparison tool, which allows users

to compare and switch utility providers by simply uploading a bill.

On the other hand, countries that take a more market-driven approach Open Banking can also aid financial inclusion in developing countries

have relied on policy makers to introduce measures that promote and where large portions of the population live in rural areas and are not

accelerate the adoption of data sharing frameworks. In Singapore, yet included in the formal economy. For instance, India’s Account

the Monetary Authority of Singapore (MAS) published an ‘API Playbook’ Aggregator system offers the potential for lending that is not based

with the hope of encouraging banks to open their services and systems. on assets, but on invoices, payments, or receipts. This opens the

The MAS has also been involved with Open Banking at a global door for more unbanked and underbanked individuals to get access

level with initiatives such as the API Exchange (APIX), an open- to credit at an affordable price. ➔

architec­­ture platform that enables market players to connect with

one another to collaboratively design, experiment, and deploy

innovative digital solutions.

35 Global Open Banking Report 2020  |  Open Banking Developments Across the Globe | ASIA
 … And not forgetting the SMEs Should that happen, having to retroactively change a go-to-market

Furthermore, developments in Open Banking will enhance financial strategy or business model is an unenviable position to be in.

services and provide new product offerings for SMEs. Firstly, Open

Banking can improve the credit infrastructure by giving banks and Conversely, in countries with a regulatory-driven approach, market

NBFC lenders access to an SME’s aggregated accounts. With a participants have largely ditched the ‘wait-and-see’ attitude for a

broader view of the SME’s credit history from multiple sources, the more pro-active and entrepreneurial one. For instance, Australian

lending decision process will be more comprehensive, leading to banks have shown willingness to position themselves as third-party

less risky loans and shorter processing times. New credit compa­ providers and bring their own offerings to market. Perhaps this is

rison tools that allow SMEs to compare available loan options are not so surprising, since explicit guidelines from regulators have

another feature that will help SMEs make better financial decisions been instrumental in giving market participants more clarity on what

for their business. the landscape will look like in the near future. For fintech startups,

this vision for the marketplace has helped them move in a more stra­

For SMEs, having aggregated accounts also enables them to have tegic and focused way, with the ability to direct their often-limited

a more holistic view of their finances and manage cashflow more resources towards the biggest opportunities.

effectively with the help of real-time forecasting tools. Additionally,

SMEs will very likely have access to more personalised financial For incumbents, the threat of having their stronghold chipped away

product offerings, as banks can tailor their product based on data is all too real, and they are actively looking to adapt and re-position

such as the SMEs spending patterns, revenue trends, and inventory themselves through M&As, partnerships, and collaborations. Take for

cycles. example Australia’s [Link], an incumbent technology service

provider to the lending industry, which recently acquired Frollo in a

A glimpse of the future push to become a leader in Open Banking. This might very well be

Across almost all countries in Asia, regulators are receptive to an indication of things to come, as traditional financial institutions

the idea of Open Banking but divided on the best approach to start looking for innovative fintechs to be their dancing partner.

implement Open Banking concepts. While countries like Singapore

tout the market-driven approach, and APIs are readily accessible,

actual utilisation remains relatively low. It could be that the lack of a

clear regulatory direction has weakened potential incentives to be a

pioneer in this area, as there is always the possibility that regulators

change their stance and decide to put in place strict Open Banking

regulations.

About Kapronasia: Kapronasia partners with our clients to grow their business and drive value through our bespoke
market research and consulting services, focusing on the Asian Financial Technology Industry.

[Link]

36 Global Open Banking Report 2020  |  Open Banking Developments Across the Globe | ASIA
 HSBC Hong Kong
Open Banking Gaining Momentum Across Key HSBC Markets in Asia Pacific

About Alvin Lim: Alvin Lim is Regional Head of Open Banking Engagement, Wealth and Personal
Banking, Asia Pacific at HSBC. Alvin supports HSBC key markets driving towards Open Banking
aspirations, covering both the regulatory and commercial opportunities leveraging the Open API
framework locally. His support includes regulatory policies and technologies like the trusted digital
identity, real-time payments, and data privacy. Alvin is also Head of Digital for HSBC Singapore.

Alvin Lim    Regional Head of Open Banking Engagement, Wealth and Personal Banking    HSBC HK

Open Banking is gaining momentum as regulatory bodies are In Singapore, HSBC is in an advanced state working with the

driving towards liberalisation of the financial industry. Regulatory MAS (Monetary Authority of Singapore) and various local banks to

bodies across many markets have started to put a structure around develop an interoperable technology, secure, and data standardi­

data sharing within and across industries, starting with financial sation through Open Banking. The collaboration is an aspiration

data. This structure differs market by market, and some are still to help every Singaporean to better understand and manage their

evolving with new insights. finances through an integrated personal balance sheet or personal

financial statement by bringing in financial data and personal data

In Asia Pacific, key markets for HSBC include Hong Kong, Australia, such as tax information, social security, investment, and more.

and Singapore, where HSBC has been actively participating with

regulatory bodies to help those markets achieve their Open Banking Leveraging experience in other markets to bring
aspirations. We broadly see three driving factors of Open Banking: to Asia Pacific
The initial development of Open Banking-enabled propositions

1. Regulatory – Governing bodies have defined parameters and has been led by the UK. The UK has led globally the development

features that need to be in place within a specified timeframe. of financial APIs, where account information APIs have been live

2. P olicy – Regulatory bodies have a defined policy but non- since 2018 – and this provides a significant opportunity for other

mandatory participation to comply. markets to learn from the models developed in implementing their

3. Market – Key players define the policy and technical standards. own API frameworks.

Participation is non-mandatory.

Since 2018, HSBC UK and First Direct have completed a pilot

In Hong Kong, we have successfully launched product information APIs through Connected Money and Artha, respectively. Insights and

and subscription APIs back in January and October 2019, respectively. customer experience from the two different Open Banking-enabled

These are also known as phase 1 and phase 2 of the Open Banking propositions are now being built into the core digital banking app,

policy from the HKMA and with the subsequent phases coming out such as ‘Account Aggregation’, enabling users a simple way to stay

soon. in control of their budget by showing their balance and transactions

from their accounts with all banks. ➔

While in Australia, HSBC was amongst the leading international

banks to share the product information APIs in July 2020, working

concurrently to the subsequent phase of development planned for

June 2021.

37 Global Open Banking Report 2020  |  Open Banking Developments Across the Globe | ASIA-PACIFIC
 Another recently launched proposition across all HSBC UK brands Most importantly, there will be challenges in the reciprocity and

is the Income & Expenditure journey partnering with Equifax and symme­tricity of data, starting with banks, as they share and exchange

AccountScore. This enables customers who may have been affected APIs. Currently, banks are seen as a treasure trove of data and as

by the current COVID-19 pandemic to submit information quickly and driving the liberalisation of the banking industry, but banks also need

easily about their current financial position. We are also adding account- to be part of the ecosystem to drive win-win outcomes for both the

to-account payments, enabling our customers to directly debit their business and customers. There will be more incentives for banks

payments from non-HSBC accounts through the payments APIs. if other industries such as telcos, utility companies, and fintechs

equally and symmetrically open up their data to create an opportunity

In other markets, it is critical for banks like HSBC to support Open to provide benefits to groups of customers at scale.

Banking initiatives by adhering to local regulations and policy. We are

assessing each market’s consumer opportunities and through Open Soon, the term Open Banking may change to the broader definition

Banking, we can support their personal financial goals, whilst making ‘Open APIs’, driving cross-industry data standardisation and exchange.

banking simpler. We believe that reciprocity and symmetricity of data will benefit the

banks, fintechs, and broader industry to build both new business

What the future holds models and customer’s propositions. And, of course, customers will

The use of Open Banking is the beginning of a journey to help banks be the main beneficiaries – on a market-by-market basis they can

create a standardised and secure way to exchange APIs, enabling look forward to seeing continuing enhancements to the way they

banks to explore and build new propositions for the customers. are able to access and use their banking data, for a more seamless

user experience. Therefore, regulating bodies in the market need to

However, there are a few main challenges facing Open Banking in create a harmonized approach across industries to drive toward an

Asia Pacific. Firstly, policies need to be updated to keep up with the open, secure and standardised data sharing to let industries thrive.

requirements in terms of data privacy, liabilities, and cybersecurity.

Secondly, adjacent technologies such as standardised ways to

authenticate and verify individuals are needed. Thirdly, a lack of

education and awareness around Open Banking’s capabilities

has made consumers less likely to consent to their data being

shared. This in turn has not only limited banks and fintechs’ ability

to innovate, it also means consumers are less likely to experience

the benefits of Open Banking and will also be less able to protect

themselves against new risks.

About HSBC: HSBC is one of the world’s largest banking and financial services organisations. For our Wealth and Personal
Banking business, we help clients to manage, protect and grow their wealth through our extensive international network.
We offer a range of services from personal banking, mortgages and loans to investment, savings, and wealth management
products.

[Link]

38 Global Open Banking Report 2020  |  Open Banking Developments Across the Globe | ASIA-PACIFIC
 The Digital Fifth
The Evolution of Open Banking in India

About Sameer Singh Jaini: Founder and CEO of The Digital Fifth, Sameer has over 2 decades of
experience in Digital Banking, Open Banking, and Fintech.

Sameer Singh Jaini    CEO    The Digital Fifth

About Shashank Shekhar: Shashank is Head of Consulting at The Digital Fifth and has experience
in technology infrastructure, Digital banking, Open Banking, and governance.

Shashank Shekhar    Head of Consulting    The Digital Fifth

Banking ecosystem of India has seen unprecedented changes in Embedding of banking services on SaaS (Software-as-a-Service)
terms of delivery and product in the last few years. It has moved from based accounting platform is a classic use case of Open Banking.
a traditional product centric, inside-out approach, to a consumption- This allows SMEs/MSMEs to fulfil their core need of managing
based, outside-in approach. Pioneered by BFSI players like Yes custo­m er receivables and payable on their accounts and also
Bank, Kotak bank, DCB bank, etc., the Open Banking ecosystem allows them to make payments to partners and collect money from
has now grown to include NBFC and other tech players who have customers.
created partnerships within the system. Open Banking has now

become a part of the Indian financial services and fintech segment.

Unlike the Open Banking initiatives seen in countries like the UK and

US, which are either completely market driven or regulations driven,

the India has adopted a hybrid model where both the market and

government take active roles in ecosystem development. In 2016,

India launched Unified Payment Interface (UPI), allowing an individual

to access his bank accounts from registered apps (such as Google

Pay) and make transactions to any other bank. With such major

initiatives being brought to the market by the National Payments

Council of India (NPCI), the BFSI sector is evolving into an API-

based collaborative model. Additionally, the emergence of players

like Neo Banks, Digital Banks & API Aggregators are simplifying life

for customers and creating new business models. Recently, larger

players like ICICI have also joined the game through the release of ➔
their developer portal which consists of over 250 APIs.

39 Global Open Banking Report 2020  |  Open Banking Developments Across the Globe | ASIA-INDIA
 Business case of Open Banking in India data via NBFC AAs, they enable customers to view all their financial

Traditionally, bankers have taken an inside-out approach to busi­ information in a single platform and allow consent-based sharing

ness and have designed products and services for customers based with third parties.

on internal discussions. Here, the innovations were driven by keeping

the products of the bank in mind and with little regard to the customer’s The effectiveness of this network has led to the rise of several use

needs. In contrast, Open Banking has affected the banking per­ cases like neobanks, digital banks, and big tech players who use

spec­tive by adopting an outside-in approach where banks work bank APIs for their underlying operations and provide highly specia­

with their partners, on a revenue sharing model, to provide the best lised services to solve the specific pain-points of their respective

solutions to customers. Banks leverage their APIs, Capital, and customer segments. The ecosystem is also supported by investors.

loyalty to partner with fintech players who are agile and have a strong

technology background to create innovative products and ease the

customer journey. Taking this a step further, banks are now building

custom platforms to fulfil specific needs of corporate customers.

While the traditional banking mindset has been the foundation of

banking, Open Banking has provided new perspectives to make

banking easier, efficient, and customer friendly.

Open Banking ecosystem of India

The Indian Open Banking network can be broadly classified into

five [Link] and NBFCs, form the bottom layer of the

ecosystem and offer their APIs to perform services like Payments,

Lending and Collections. This Layer is powered by technology stack

partners and supported by an emerging breed of API Integrators

which have the coding expertise necessary. The requests sent to Conclusion
these banking APIs are further filtered by the API Gateway players With the entry of Account Aggregators and the establishment of newly

such as IBM or Redhat, who provide an additional level of security formed setup for Lending, OCEN (Open Credit Enablement Network)

to the Bank APIs. This ecosystem is enabled by key players who the ecosystem is poised for the next phase of growth, not only from the

perform tasks like data validation and analytics. The next layers banking ecosystem but also from sectors like insurance and securities.

within the ecosystem consist of enablers powering new solutions This has led to an increase in the number of use cases. On the other

around Open Banking. Open Banking cannot be truly achieved hand, due to the unprecedented growth in this sector, a larger segment

without the democratisation of the customers’ financial data. With the of investors is now focused on fintech players who work in the Open

RBI’s directive giving customers the control to share their financial Banking space.

About The Digital Fifth: The Digital Fifth is India’s first fintech consulting and advisory firm for banks and financial
institutions. We have been the go-to solution finders for established BFSI organisations and emerging fintech players alike,
where we focus on adding value to our client’s businesses and help them create an impact. We also provide digital and
fintech training across segments; and leading connect in India for international fintech hubs and startups.

[Link]

40 Global Open Banking Report 2020  |  Open Banking Developments Across the Globe | ASIA-INDIA
 Sterling Bank
Sterling Bank - The Open Banking Strategy and Roadmap

About Adeyinka Adekoya: Adeyinka is a payments expert with work experience for over 10 years.
He currently leads the digital transformation agenda at Sterling Bank as the Digital Transformation
Manager, and prior to that headed the Acceptance Business team for the institution.

Adeyinka Adekoya    Digital Transformation Manager    Sterling Bank

Bank-as-a-service, also known as Open Banking, is gradually To the latter, Nigeria has also adopted the Nigerian Data Protection

transforming the way financial services consumers interact with Regulation that provides guidelines on the extent to which customer

banks and other financial institutions in Nigeria. Since the introdu­ data can be shared and protects the principal data owner while

ction of this banking concept that has seen over 50 countries all there are several efforts towards standardising the ethos of the open

over the world adopting varying levels of its application, Nigeria has financial API economy such as the drive for standardisation by Open

taken the lead in Africa just as the UK and Europe spearheaded the Banking Nigeria, a non-for-profit organisation, in collaboration with

practice by implementing the EU Payment Services Directive (PSD2) all stakeholders and the apex regulator, Central Bank of Nigeria

which came into force in January 2018. (CBN). The opportunities are also there for banks that take the

initiative such as customer and buyer behaviour information, insight

As customers’ expectations of financial services grew, with the into the velocity of money and payment system efficiencies that

financial technology improvements and consistent improvements come with the elimination of third parties in the value chain of

in the non-financial (real) sector of the economy, the Central Bank financial services delivery.

of Nigeria (CBN), in May 2019, considered strategic steps towards

adopting this concept by releasing a Request for Information Sterling Open Banking initiative is an innovative service that enables

document to the public that was aimed at guiding the development technology inclined companies to have an open but secure access

of the Payments Systems Vision (PSV) 2030 with one of the primary to call up our banking services using our APIs (Application Programming

focus on Open Banking. The CBN considered it necessary to device Interface). In a dynamic environment such as ours, the onus is on

a payment strategy that is hinged on open financial services locally, compa­nies that have large capacity to make the market more digital

and in the African region, since this is now a global phenomenon ready. We have provided these services to suit all types and forms

and a new standard in payment practice. of code integration, making it agnostic and on demand. We have

achieved this by hosting a sandbox which is regularly enriched to

There are, however, notable challenges with implementing Open support consumer engagement.

Banking in Nigeria such as the disintermediation by third party players

(eg fintechs, insuretechs, and healthtechs), who offer similar services Starting the journey in 2016 with five active companies and 16 API

to banks’ customers, loss or paucity of regulatory compliance connections, our API connections have grown to over 140 with

and risk management control through multiple inte­grations via appli­ over 50 players across all sectors and over 7 million API calls as of

cation programming interfaces that could result to fraud or breach June 2020. Key players using our APIs are fintechs, health-techs,

of Anti Money Laundering/ Combating the Financing of Terrorism payment gateway companies, and lend-techs, while others are

(AML/CFT) act, customer data intrusion and customer privacy microfinance banks, payment service providers, and electronic

concerns. transaction switching companies. ➔

41 Global Open Banking Report 2020  |  Open Banking Developments Across the Globe | AFRICA-NIGERIA
 Our Open Banking services will also be extended to payment service As a regulated entity, the provisions of the governing body are

banks and other financial institutions as we see opportunities in limited to current players in the financial sector. Learning quickly

these areas. to advocate for a policy to guide this practice for inclusiveness

contributed directly to our push for governance internally.

Our first objective is to support the growth of Open Banking parti­

cipation locally and then globally, through grants that foster promotion A deep review of our business model revealed several risk mana­

of Open Banking standards in Nigeria as well as increase participation gem­ent and compliance gaps where users of our APIs resell to

of budding tech-preneurs in the areas of development, experimentation, undocumented third parties. This challenge with third party risks

innovation, and trained expertise. Second, the democratisation of posed existential threats based on our financial institution license

payments is at the heart of our Open Banking strategy and roadmap. status and therefore had to introduce better risk mitigants such

We intent to make payments ubiquitous through financial service as liability shifts and business value processes to protect the

delivery by inclusiveness. mothership.

Third, we aim to move quickly through partnerships and alliances in For the future we envision virtual institutions that cut across conti­

a multilateral industry framework - we have collaborated strate­gically nents with payment needs for scale. As Bill Gates once said, banking

through memberships with Open Banking Trust, Nigeria, Financial is a necessity, but banks are not, the continuous paradigm shift will

Services Innovators, and Fintech Association of Nigeria network. require more creativity in all sectors of the 4th industrial revolution

Here we have focused on agriculture, health, renewable energy, and beyond. We believe that if we are at the heart of this shift supporting

education, transportation, and media industries and set to participate it with the right technology capabilities and opera­tional know how,

in minimum 30% of these industries by 2023. building new capabilities for the different user specifics, we can back

the change and ride the next waves of trans­formation in global payments

We set out our moon-shot strategy to be leaders within 7 years, by supporting all players. This is a journey for us, and we are keen

with data at the heart of that strategy. Key learnings have encircled to stay the course.

standardisation, regulation, and risk management. On standardisa­

tion, various consumer needs have given us the push to include more

services to our Open Banking suit. Initially, we limited our service

offerings to basic banking services but as the needs and require­

ments of our customers grew, we had to adapt quickly to expose

more APIs to them. This has helped our value creation, systems and

processes, and multiple developments in our API stack.

About Sterling Bank: Sterling is a full-service commercial bank in Nigeria. Its purpose is to use finance to solve some of
the biggest challenges Nigeria faces, using technology to scale such solutions while delivering a profitable business to its
investors. We believe that private sector capital is what will drive development in Africa and we have taken a bet on that
model for Nigeria.

[Link]

42 Global Open Banking Report 2020  |  Open Banking Developments Across the Globe | AFRICA-NIGERIA
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Open Banking – Outstanding Use
Cases and Propositions

A survey among over 2000 financial institutions conducted by INNOPAY and The Paypers in May 2020 found that

most global banks, fintechs, and investors are especially looking to learn more about inspiring and most promising use

cases enabled by Open Banking. As such, one of our aims with 2020’s Global Open Banking report is to expand on the

premise of the survey itself and to analyse the use cases already driving value for consumers, SMEs, and corporates

and those that hold great potential.

Unlocking Value Through Meaningful
Insights

Open Banking is not just about sharing data. True customer value lies in the insight generated from the data. In this

chapter, we outline some practical examples of this in-practice and concrete tips and actionable offers that can help

customers improve their finances and wellbeing. Moreover, we dig into some of the most compelling Open Banking

consumer-focused use cases and propositions.

 Moneyhub
Open Finance - The Journey from Insight to Value

About Vaughan Jenkins: Vaughan is an experienced Sales Director with senior industry experience
in financial services, especially the life and pensions, asset management and wealth sectors.
He co-authored ‘The Insurtech Book’ and has worked as an associate and consultant to a number
of businesses.

Vaughan Jenkins    Sales Director    Moneyhub

Moneyhub was born out of frustration. Frustration at not being able to create value for them, it means making sure they understand how

see accounts in one place; repetitive data entry; obstacles to financial their data is being used to create that value and that goes beyond

planning and, above all, financial institutions withholding data as if consent-based data sharing.

it was theirs and not the customer`s. This was in 2014 – before Open

Banking but in the thick of the hype around Big Data. The role of financial services in building trust
But an industry obsessed with pushing products still has lessons

Data is the new oil to learn when it comes to the difference between leveraging insight

Data is called the fuel of the Fourth Industrial Revolution. Like oil, and selling it.

data needs to be extracted and reservoirs tapped, but concerns have

grown that this can be at the expense of consumer privacy. It was We need to accept that people should control who accesses their

soon clear that the data also needed refining if insight was the data and for what purpose. We need to think of organisations as data

goal, but the processing was still exploitative. In financial services, custodians or information fiduciaries. That means that providers

it seemed that the asymmetry of information between provider and need to be relevant and useful and Moneyhub provides that missing

consumer was ever-widening. link.

Key to your data processing strategy, and your customer experience It aggregates, organises, and enriches data and then monitors it on

design, is how you get to know the people you’re interacting with quickly, behalf of the customer. Then, with an understanding of the customer

effectively, and in context. This isn’t about extracting data upfront, context, actionable insights or nudges can be introduced to coach

it’s about progressively sharing, reciprocating and proving your the user towards better outcomes. This might be through prompts,

trust­worthiness. alerts, or new options being surfaced. It’s about helping people

make active, contextual choices about what they share, with whom,

Trust: the sum of transparency and consistent and for what exchange of value.

value delivery
But the value was still elusive and Moneyhub could see why. Harnessing insights to enable Open Banking
The industry needed to focus on the value it creates, rather than the Payments
value it takes. By focusing on doing this consistently, people will Insight is not an end in itself and the consumer needs the means

trust you to deliver - and trust also compounds over time. to put in action decisions, simply and cheaply. Moneyhub uses

Open Banking payments technology to facilitate the movement of

It means focusing on the value, meaning, and engagement you money to savings, investments, and pensions, or to pay bills and

create for the people you serve. When utilising people’s data to reduce debts. ➔

46 Global Open Banking Report 2020  |  Unlocking Value Through Meaningful Insights
 By being a trusted partner of the customer, the insight from income ● Despite companies often having substantial customer data available,

and expenditure analysis combines with navigation towards impro­ they continue to require customers to go through time-consuming

ved financial wellbeing. Helping customers by being the everyday and inaccurate fact-finding processes. With consent, the consumer

finan­cial coach, means that wellbeing is not a goal but a byproduct of can share their data, containing verified assets, income, and

improved customer outcomes. Here are some of our practical exam­ expenditure information.

ples of that in practice: ● Consumers can self-police by using ‘appropriate friction’ such

● Expenditure analysis shows that the customer is paying rent. as alerts around budget overshoots or comparing the effect of

There is no sign of contents insurance - so is there an awareness saving an amount rather than spending it.

of the risk associated with that? Or could that rental payment

history be used to support a mortgage application? Privacy & personalisation: a mutually inclusive
● An employer provides a range of employee discounts from retailers relationship
– as one of our clients has shown, by personalising offers based By never selling customer data or taking a third-party commission

on past expenditure, the average Moneyhub user can save over on product sales, Moneyhub and its enterprise clients have always

GBP 70 per month, with no change in spending habits. respected customer interests and balanced privacy against perso­

● Consumers are keen to invest ethically and sustainably but, in nalisation. The value exchange is always fair and controlled by the

addition to aggregating and scoring their investment portfolio, consumer.

expenditure analysis could be used to create nudges towards

greener lifestyle options or a carbon footprint offset savings plan Open Banking is useful but ancillary to the benefits derived from

or donation. holistic Open Finance.

● Impulse spending can be converted to impulse saving with

an unplanned treat being accompanied by a self-imposed rule to Critically, value creation from insight is organic and relationship-

sweep the same amount into an ISA or a pension. based, a far cry from crass product pushing. If a product solution is

● Variable recurring payments can be set up when goals are met involved, it is more likely to be bought than sold and more likely to be

or a budget is tracked. retained as it is suitable and affordable. From here, customer centri­

● By adding a house price feed combined with mortgage repayments, city becomes a reality rather than a slogan - and the path from insight

customers can be alerted to new financing deals becoming to value is lit by Open Finance adoption.

available as the loan-to-value ratio comes down.

● With 80% of employees not sure if they are saving enough and

the self-employed still outside of auto-enrolment, the adequacy

of pension saving can be forecasted and nudges made to help

towards a better outcome, referencing current expenditure and

in-retirement lifestyle.

About Moneyhub: Moneyhub is the leading Open Finance platform that enhances the lifetime financial wellness of people,
their communities, and their businesses. Moneyhub’s APIs and white-label solutions power businesses – both from within
and from outside of financial services. Providing data connections and intelligence, we also initiate Open Banking payments
to enable hyper-personalised experiences that drive customer engagement.

[Link]

For the complete company profile please click here

47 Global Open Banking Report 2020  |  Unlocking Value Through Meaningful Insights
 Company name Moneyhub Enterprise

Company description Moneyhub’s APIs and white-label solutions power businesses – both from

within and from outside of financial services. Providing data connections

and intelligence, we also initiate Open Banking payments to enable hyper-

personalised experiences that drive customer engagement.

Active since 2014

Head office Bristol, UK

Service provider type Open Banking enablers

API connectivity for payment initiation

API connectivity for data retrieval & value-added services on the data

Consent management

End-user solutions and propositions

Fraud/risk/security

Types of supported APIs / API standard How we expose data and insights. APIs include:

supported - Financial aggregation

- Identity and authentication

- AI proactive nudges

- Smart budgeting

- Account connection

- Data sharing

- Smart insights and analysis

- Valuation and holdings

- Transaction categorisation

- Reporting

- Payments initiation API

Pre-packaged features:

- Budgeting

- Savings goals

- Projects

- HMRC tax return

- Receipt management

- Pension modeller

- ISIN code matching

Do you have redundancy and coverage Yes

provided by multiple integrations

(APIs & Direct Access)?

48 Global Open Banking Report 2020  |  Unlocking Value Through Meaningful Insights
 How will you handle automated refunds? Refunds are managed by our transaction matching service which allows us to

initiate full or partial refunds, tied to the original payment. Where refunds are

required, we capture account details during initial payment and automatically

encrypt before storing securely where appropriate.

How will you mitigate the risk of bank Open Banking enables verification of payment to take place as part of

transactions failing? the transaction to ensure correct payment is made. Moreover, in some

circumstances we can also verify if the funds have been successfully received.

It is also possible to remove ‘insufficient funds’ charges using Open Banking.

How will you reconcile payments Each payment transaction has unique meta data attached as part of the

efficiently? Moneyhub Payment Initiation Service which facilitates easy integration and

reconciliation across many different back office systems.

How it works Account-to-account payment using Open Banking Payment Initiation and the

Faster Payments Network, backed by legislation for consumer protection.

What problems does the company solve? Moneyhub provides businesses and consumers access to previously inaccessible

financial data in one centralised location while also initiating account-to-account

payments, unlocking the power and potential beyond Open Banking. Moneyhub is

currently the only provider which facilitates seamless integrations with not just

banks but the widest breadth of financial institutions. This includes pensions,

investments, loans, mortgages, savings, property values, and, of course, bank

accounts and credit cards, setting the standard for the Open Finance ecosystem.

Industries / target markets Bank/Building Society

Employee Benefits Consultancy

Financial Advice

Insurer

Lending/Collections

Pensions Provider

Retail

Technology Providers

Telcos

Wealth and Asset Management

Business model / pricing For more details, please contact our sales team.

Founder(s) Dave Tonge

Funding rounds and investors 4 major share holders: Sam Seaton, Dave Tonge, Dan Scholey, Rael Gordon.

Geographical coverage (operational areal) UK & EU

Technology Native Cloud

49 Global Open Banking Report 2020  |  Unlocking Value Through Meaningful Insights
 Software language JavaScript

Software developement tools ReactJS, NodeJS, Docker, Kubernetes, AWS, VS Code, Bitbucket

When was the core technology developed 2014 onwards

Partners Not applicable

Customers / case studies Aon, Akoni, Arq, Big Exchange, Blackhawk, KPMG, LEBC, Mercer, Moneyed,

Nationwide, Newbury Building Society, OpenMoney, Roqqette, SEI, Lumio,

Wealth Wizards [Link] and see

[Link]

open-finance-exclusive-interview-with-moneyhub--1243956.

Awards [Link]
* Finalist - ‘Team of the Year’ - UK FinTech Awards 2020

* Finalist - ‘Technology Innovation of the Year’ - UK Pensions Awards 2020

* Winner for ‘Most Innovative New Product Using Account Aggregation For

Making Consumer Lives Better’ - FDATA Global Awards 2019

* Silver Winner for ‘Disruptive Business Model’ category - UK Business Awards

2019

* Winner for ‘Leading Digital Platform’ - Schroders UK Platform Awards 2019

* Highly Commended for ‘Leading Innovation in Workplace Solutions’ –

Schroders UK Platform Awards 2018

* ‘Best in Show’ Award 2017 - PFS’s A Festival of Financial Planning

* ‘Biggest Customer Impact’ Award 2017 - Lloyds Build an Open Bank

Hackathon
* Finovate Presenter Award 2017

Contact +44 (0) 117 280 5155, hello@[Link]

Website [Link] and [Link]

For the complete company profile please click here

50 Global Open Banking Report 2020  |  Unlocking Value Through Meaningful Insights
Unlock the power
of Open Finance
with Moneyhub
We power businesses with data connections and
intelligence, leveraging Open Banking payments
to enable hyper-personalised experiences that
drive customer engagement.

[Link]
Get in touch with us at hello@[Link]
 ING
Open Banking as the Dawn of a New Era

About Patrick Langeveld: Patrick Langeveld has been with ING for over 10 years now. During his
career he fulfilled roles in Strategy and Pricing, Product Management, Innovation and since beginning
of 2018 he joined ING’s Open Banking team. In his role as Innovation Driver, Patrick is leading the
efforts in defining, validating, and implementing the opportunities for the bank arising from Open
Banking.

Patrick Langeveld    Innovation Driver    ING

Openness is disrupting the banking industry. Changes in consumer Open Banking accelerates business partner­
behaviour, competition, regulations, and technology require banks to ships and unlocks new customer journeys
open up to provide personal, instant, relevant, and seamless services. Years before its introduction in 2019, we’ve chosen a strategic

approach towards Payments Services Directive (PSD2) and Open

The digital customer experience is now the key differentiator, and Banking. By doing so, we’ve put lots of time and effort into developing

our main competitors are no longer just limited to banks. They are one ING experience on one global foundational platform serving all

also BigTechs like Apple, Google, Tencent, and Ant Group who are our customers (ING serves over 38 million private, corporate, and

increasingly moving into financial services. Their go-to platforms institutional clients in >40 countries). This decision supported us

offer the same experience everywhere and cater to a wide range of to become a global platform bank with one user experience, one

customers’ primary needs. Whether it’s food services, social media, API solution, and one Developer Portal to efficiently and seamlessly

banking, shopping, or transportation. In Asia we’ve seen the rise interact with clients and TPPs.

and rise of so-called superapps (such as WeChat, Kakao) covering

all of these areas and they are glued together via Application APIs are a great way to foster innovation and accelerate our digiti­

Programming Interfaces (APIs). In order to provide our customers sation roadmap. In fact, not only for ourselves but also for our clients.

with the most relevant offerings and to be able to truly empower them Whether it is in our corporate portfolio (e.g. for real time cash

in their daily lives and work, banks – like ING - have to think beyond and liquidity management, trade, financial markets), in our SME

banking and develop their own platforms. segment, or in a B2B2C scenario where APIs can influence the

way businesses serve their end-clients. A textbook example is the

At ING, we believe successful banks will be those with a laser-focus implementation of our Payment Request API. Dutch consumers

on customer experience, a strong trusted brand, and the ability to who want to have their orders from IKEA and Albert Heijn delivered

leverage a large customer base to attract partners to their platforms. at home will be able to pay in real time at their doorstep with ING

Our platform strategy starts with the ambition to create a uniform and Payment Request.

borderless experience complemented by beyond banking products

and third-party offerings that add value for our clients. We have an We are still at the beginning of this new exciting era of Open Banking.

open platform strategy because we firmly believe that banks of In addition to our homegrown startups Cobase (a digital platform for

the future will look completely different and the financial services treasurers to manage payments and cash) and Yolt (a platform for private

industry at large will converge to a more open structure. An open individuals to manage finances), we have been working on new

structure in which APIs are the de facto standard for integrating and propo­sitions to strengthen our customer experience. ➔

co-development with partners and clients.

52 Global Open Banking Report 2020  |  Unlocking Value Through Meaningful Insights
 The partnership with Minna Technologies, the acquisition and just around 8 months. This digital platform is best in class on the

inte­­­gration of Lendico, and our shopping platform DealWise, all German market when it comes to speed and convenience of applying

embrace the fun­da­mentals of Open Banking. for a loan: the customer applies and hand in all necessary documen­

tation online and receives the decision within 48hrs.

ING and Minna Technologies launch new

subscription management service DealWise: Never miss a great deal
DealWise is a shopping platform that gathers cashback deals and

great discounts in one place. Developed by ING as a ‘beyond banking’

service, the DealWise app is available to any consumer (not necessa­

rily an ING customer) with a bank account. In the near future, it will

provide extra benefits to ING customers by being integrated into

ING banking apps of multiple countries. DealWise helps consumers

choose the most relevant deal and at the same time it helps merchants

to find and retain targeted clients. DealWise is currently available in

Romania but other countries will gradually be brought into the fold.

These partnerships and integrations are great win-win opportunities.

ING has entered a partnership with Minna Technologies to give our Want to know more? Visit our Global Developer Portal for insight in

customers the opportunity to manage their subscription services our continuously evolving API portfolio. Or want to partner and travel

without leaving ING’s digital channel. Prior to customer consent, the along our Open Banking journey, get in touch!

new service not only provides Belgian customers with a clear overview

of all subscriptions, but also allows them to cancel existing sub­

scrip­tions and improve them by switching to better alternatives.

The partnership is developed based on Open APIs and is a perfect

example of how we integrate 3rd party capabilities to strengthen

our platform proposition.

Integration of Lendico platform in ING

In April 2020, the platform of Lendico – a Berlin fintech fully owned

by ING and offering a digital lending solution for German SMEs –

has been integrated through ING’s global Open Banking platform in

About ING: ING is a global financial institution with a strong European base, offering banking services through its operating
company ING Bank. The purpose of ING Bank is empowering people to stay a step ahead in life and in business. ING Bank’s
more than 55,000 employees offer retail and wholesale banking services to customers in over 40 countries.

[Link]

53 Global Open Banking Report 2020  |  Unlocking Value Through Meaningful Insights
 Spacing
To ensure legibility, keep the provided clear space around Clear Space
the logo. Only use the full bleed version if space is
extremely limited.

To use the TrueLayer logo please refer to our

Brand Book. Thank you!

[Link]

Full Bleed
Company name TrueLayer

Company description TrueLayer makes it easy to integrate financial services into any app or website,

anywhere in the world. We build intelligent financial infrastructure that’s open

to everyone - connecting banks to fintech apps and enabling instant payments

across the globe. Founded in 2016, TrueLayer is connected to major banks and

trusted by the biggest names in fintech including Revolut, Nutmeg, and Zopa.

Active since 2016

Head office London, UK

Service provider type Open Banking enablers

API connectivity for payment initiation

API connectivity for data retrieval & value-added services on the data

Consent management

TPP checking & repository

Fraud/risk/security

Types of supported APIs / API standard We enable connections to all bank APIs across Europe, regardless of the

supported standards or protocols used (STET, Berlin Group, OBIE).

Do you have redundancy and coverage No

provided by multiple integrations

(APIs & Direct Access)?

How will you mitigate the risk of bank TrueLayer performs validation on requests made to our APIs to ensure that

transactions failing? requests sent to the banks have the highest chance of success.

How will you reconcile payments Payments can be settled into wallets held with TrueLayer where PIS transactions

efficiently? can be reconciled and withdrawn in bulk payments. For clients not wishing to

use the automated settlement/reconciliation offering, transactions will settle

directly into their operational bank account where they can perform their own

reconciliation process.

How it works TrueLayer’s API platform makes it easy to integrate financial services, like Open

Banking and payments, into any app or any website, anywhere in the world.

What problem does the company solve? TrueLayer reduces the cost and complexity of building and maintaining digital

financial services.

Industries / target markets Financial institutions, fintechs, banks, wealth management, forex and

remittance, accounting, igaming, payment services providers, ecommerce and

retail, B2B payments

54 Global Open Banking Report 2020  |  Unlocking Value Through Meaningful Insights
 Spacing
To ensure legibility, keep the provided clear space around Clear Space
the logo. Only use the full bleed version if space is
extremely limited.

To use the TrueLayer logo please refer to our

Brand Book. Thank you!

[Link]

Business model / pricing

Full Bleed
It’s free to get started with TrueLayer and easy to begin testing in our sandbox.

The pricing for our data, insights, and payments products is usage based. Small

customers can start with simple pay-as-you-go pricing while enterprise customers

get volume discounts and are able to get premium support for a monthly fee.

Founder(s) Francesco Simoneschi and Luca Martinetti

Funding rounds and investors 2016: Raised USD 1.3 mln seed investment from Connect Ventures

2017: Raised USD 3 mln Series A led by Anthemis Group

2018: USD 7.5 mln in Series B funding led by Northzone

2019: USD 35 mln in Series C funding led by Tencent and Temasek

2020: USD 25 mln in Series C extension led by existing investors

Geographical coverage (operational areal) TrueLayer is live across the UK, France, Italy, Spain, Ireland, Poland, Germany,

and Lithuania. We have plans to expand across the rest of Europe, Asia-Pacific,
and South America in 2021.

Technology Cloud native

Software language Our go-to programming languages for backend services are C# and Python,

but we use other technologies when the challenge we are working on calls for it

(Golang and Rust).

Software developement tools Most of our data pipelines currently use Python, Spark, and Hive, sometimes

orchestrated with Airflow (but often glued together with BASH);

Docker containers orchestrated by Kubernetes, hosted in AWS;

Monitoring using a combination of the ELK stack, Jaeger, and Prometheus/Grafana.

When was the core technology developed 2016

Partners TradeCore and Codat

Customers / case studies Customers include Revolut, Nutmeg, Freetrade, Zopa, Chip. Case Studies:

Revolut: [Link]
ANNA: [Link]

STAKE: [Link]

Credit Ladder: [Link]

Smarkets: [Link]

Awards “Top Fintech Companies 2020” CB Insights Fintech 250

“Best Innovation in Payments” at the FData awards 2019

“The Pioneer Award” at the 2019 British Banking Awards

Contact hello@[Link]

Website [Link]

For the complete company profile please click here

55 Global Open Banking Report 2020  |  Unlocking Value Through Meaningful Insights
Open Banking and Payments

Offering the right payment methods and better customer experience can give merchants a competitive edge. We give

our readers a useful summary of the benefits of Open Banking Payments and explain how Open Payments can offer

advantages over cards. Moreover, we provide key insights regarding the benefits of the Request to Pay service, which

offers SMEs and their customers a way to interact over payments, and way more choices.
 Trustly
Post-PSD2: One Year on, Where Are Open Banking Payments Now?

About Ciaran O’Malley: Ciaran is the Head of Commercial Strategy at Trustly. He has been involved
in Open Banking in the UK and other industry initiatives such as SWIFT’s Pay Later API standard.
He has a background in investment banking. Firstly at Credit Suisse as a Derivative Quant working
on the implementation of CRD IV and laterally in Financial Institutions Mergers & Acquisitions at
SocGen and Nomura.

Ciaran O’Malley    Head of Commercial Strategy    Trustly

Since PSD2 went ‘live’ in September 2019, a raft of Payment Initiation This has been a huge step forward and allows online banking

Service Providers (PISPs) have emerged, enabling consumers the payments to begin delivering a seamless online user experience.

fast, convenient option of paying straight from their bank account,

as well as offering a range of benefits to merchants. Cards versus OBeP

So, why are OBeP’s gaining so much ground over traditional card

Open Banking ePayments (OBeP) are now one of the fastest- payments, particularly online?

growing payment methods in EMEA, where they are set to overtake

both credit and debit cards in popularity by 2023. Cards were not really invented for ecommerce, they were invented

for use at in-store point-of-sales and they have been retro-fitted to

So, over the course of the first year, how have Open Banking pay­ work with newer, digital channels.

ments shaped up – and what’s on the road ahead?

When compared with cards, Open Banking payments have full geo­

Facing the friction graphical coverage and they are much more secure. Merchants also

It has been a bumpy journey for many involved, with a lot of APIs initially still have to contend with the problem of card fraud and rising card

failing to deliver a simple user experience. processing costs – issues that are diminished by OBeP.

For example, in some cases, the OBeP process has involved numerous Despite all this, cards are often still a preferred option for merchants.

redirects and excessive security measures, such as requiring custo­ This is because, in the majority of cases, online banking payments

mers using a PISP to go through two or more Strong Customer still lack several key functionalities. The root of this problem is that

Authen­ti­cation (SCA) processes. Other banks have claimed that the vast majority of PISPs can only facilitate payments initiation

allowing third parties to access their apps was too complex and and not deliver a complete payments solution. Merchants using an

have instead relied on other authentication routes that offer a more ‘initiation-only’ provider will still need a refund (or payout) solution,

stilted user experience. An intervention by the European Banking reconciliation services and fast transaction processing abilities.

Authority has helped this situation improve, by pushing banks

to ensure their process flow is more fluid, with fewer steps for With many PISPs, merchants also can´t be sure that the payment will

consumers. clear, because so many are relying on batch processing. This is a

very big problem for merchants, making OBeP (via an initiation-only

As time has gone on and initial API niggles have started to settle, there PISP) riskier for them to accept. When a direct bank payment is

has been an increasing trend towards using the mobile phone – and initiated, it’s very valuable for the merchant to receive an immediate

biometrics, in particular – to authenticate consumers using a PISP. notification from their payment provider so they know that the ➔

58 Global Open Banking Report 2020  |  Open Banking and Payments

 payment has actually arrived. This is particularly important for This is one of the many issues that Trustly addresses - through our

digital goods merchants who need to fulfil orders (such as music account-to-account, or intra-bank model. Because we are embedded

downloads and games) instantly. in the payments flow, we can receive and settle funds locally and

instantly – without being subject to delays caused by batch processing.

So, in short, OBeP needs to go through a PISPs that offer a full This not only facilitates instant payments, but instant refunds too.

range of benefits in order to be a good enough option for merchants,

compared to card acceptance. The future of OBeP

So, the first-year wobbles are fading, but Open Banking has still got a

Room for improvement long way to go and a lot more to give to reach its full potential – which

One advantage of Open Banking payments is that they should be is to make ecommerce truly simple for both consumers and merchants.

able to use the instant payments rails. If the money can be instantly

moved, or at least validated via the PISP, merchants can fulfil orders There is also room, over time, for a global payments network, built

faster and with more confidence – supporting a better overall on Open Banking, which can start to replace cards more broadly

buying experience. Currently, this immediate transfer of funds is and give both consumers and merchants a better, more efficient

not supported by many PISPs. payments experience.

Consumers also expect end-to-end consistency across their This will only happen if Open Banking payments are delivered by

payments experience. This means they want the same speed and full-service PISPs, like Trustly, who can connect via multiple channels

convenience from a refund as they do from the original payment. and are embedded in the flow of funds. This model powers the real-time

Instant refunds are a feature that is proven to increase customer movement of money, efficient reconciliation, merchant fund notifica­

loyalty. In fact, in our recent ecommerce survey, 65% of customers tions and a greater volume of settled payments.

said the speed and ease of refund affects where they choose to

shop, while 95% said same-day refunds would make them more A bank transfer payment via Trustly also offers a slicker, more trusted

loyal to a merchant. customer experience, with no manual data entry or additional steps

for the consumer, a fast process and a consistent experience for

Of course, the immediate refund functionality that supports a both purchases and for returns or other customer payouts. At Trustly,

seam­­less customer experience is also beneficial to merchants, our approach is focused on delivering the gold standard of OBeP

since it helps them manage cashflow, reduce costs and minimise services and we’re proud that this dedication has earnt us recogn­

administrative complexity. tion as the Best PISP at the 2020 Merchant Payment Ecosystem

Awards.

About Trustly: Trustly is a Swedish fintech company that develops and sells online payment solutions. Their mission is to
make online bank payments convenient for everyone by connecting consumers and merchants through the bank account
- the hub of people’s financial life. With nine offices in Europe and the Americas, Trustly processed more than 12 million
payments monthly.

[Link]

For the complete company profile please click here

59 Global Open Banking Report 2020  |  Open Banking and Payments

 Company name Trustly

Company description Trustly is the leading global Online Banking Payments provider. We have unique

transatlantic coverage, enabling 600 million consumers banking with 6,000+

banks across Europe and the US to pay directly from the bank account. We offer

services to more than 7,000 merchants in ecommerce, travel, financial services,

and igaming. Trustly has 450 employees across offices in Stockholm, London,

Cologne, Barcelona, Helsinki, Lisbon, Malta, Redwood City, and Vitoria.

Active since 2008

Head office Stockholm, Sweden

Service provider type Platform enabler

API connectivity for payment initiation

API connectivity for data retrieval & value-added data solutions and service

TPP checking & repository

End-user solutions and propositions

Fraud/Risk/Security

Types of supported APIs / API standard N/A

supported

Do you have redundancy and coverage Yes

provided by multiple integrations

(APIs & Direct Access)?

How will you handle automated refunds? Automated refunds are initiated via an API call. Payments are executed from the
merchant’s balance with Trustly. Trustly uses its network of local bank accounts

and instant schemes to deliver the fastest possible payment.

How will you reconcile payments As Trustly is in the flow of funds we are able to offer a full-service PIS where

efficiently? reconciliation is a core part. Initiation-only services can only initiate the payment

and has no way of actually knowing that the funds have settled.

How it works First, the consumer selects Trustly as the payment method in the checkout.

The consumer is then presented with a bank selector in Trustly’s iframe, without

leaving the site. After selecting their bank, the consumer is asked to verify

themselves with their bank-provided authentication method, static username,

or password. Finally, the consumer chooses the account from which to pay

(checking, savings etc.).

What problem does the company solve? Trustly is a fast, simple, and secure way for European consumers to pay directly

from their bank account.

60 Global Open Banking Report 2020  |  Open Banking and Payments

 Industries / target markets Digital Goods, Ecommerce, Financial Services, Travel, iGaming, Online Gaming, FX

Business model / pricing Trustly offers differentiated pricing across its verticals on certain factors such as

merchant risk.

Founder(s) Carl Wilson, Joel Jakobsson, and Lukas Gratte

Funding rounds and investors Didricksson Alfven, Bridgepoint, Nordic Capital, Black Rock

Geographical coverage (operational areal) Europe, US, Canada, Australia

Technology N/A

Software language N/A

Software developement tools N/A

When was the core technology developed N/A

Partners Worldpay, Adyen, and Ingenico, among others

Customers / case studies Paypal, Alibaba, Skrill, TransferWise, Airbaltic, KLM

Awards PISP, AISP (Payment Initiation Service Provider, Account Information Service

Provider) at the Merchant Payment Ecosystem Awards (MPE Awards).

Ranked 1344, FT1000 list

Ranked 482, EGR B2B Awards 2018

Best payments company, Wealth & Finance Awards

Europe Award for Innovation in Ecommerce Payments 2018

Contact [Link]@[Link]

Website [Link]

For the complete company profile please click here

61 Global Open Banking Report 2020  |  Open Banking and Payments

 BankiFi
Request to Pay – Don’t Wait, Start Today!

About Conny Dorrestijn and Mark Hartley: As renowned innovators in Payments & Open
Banking, Mark Hartley and Conny Dorrestijn share a background of over 25 years in a world
where banking and fintech meet. They share a purpose on ‘giving business owners their
weekend back. By and through the bank’.

Conny Dorrestijn and Mark Hartley    Founding Partners    BankiFi

As 2020 makes a turn post-summer to the second half of the year, Whilst the Euro Banking Association (EBA) launched in September

it has become obvious that the pandemic will not ‘blow over’. What 2020 a survey into corporate requirements around Request to Pay,

is also abundantly clear is that the ‘real economy’ is suffering and there is no reason not to adopt a Request to Pay service today for

that the ‘markets’ and all of us need to put all hands on deck to micro and small businesses that covers a wide range of underlying

support our businessmen and women. payment instruments, offers partial payments, and consolidates

with a bookkeeping system of the customer’s choice and so much

Our concern for the small businesses and the independent traders more.

and workers (#gig) that always find themselves at the forefront of

change, centres mostly around the need to change to a digital Here are three good reasons to start today helping your business

business model and in the meantime manage the funds they receive customers where it matters most:

and owe as efficiently as possible, all while they focus on their core

business.

Action 1 – instant money in the bank

We also see people cancelling subscriptions, regular payments, or ‘Cash is king’ is today truer than ever. It is no good to have a long

direct debits and not always making due or full payments. Given the list of debtors who pay very late or do not pay at all. The cost of

uncertainty, consumers want more control over what they spend and late payments cannot be overstated in terms of pure money, but

when. This is causing SMEs, but also charities, a huge challenge. also in terms of lost opportunities and late hires. Hitachi Capital

UK issued a research paper in September 2019 and calculated

There needs to be a way for SMEs and their customers to interact that late payments cost the UK SMEs GBP 51.5 billion a year. The

over payments that gives the customers more choice over what European Payments Report researched nearly 10,000 businesses

they pay and when, and the SMEs a way to offer this choice whilst in 29 countries all over Europe on the risk, impact, and solutions

securing the payment. of late payments.

A standalone Request to Pay service (RTP4) offers SMEs and A Request to Pay private label scheme allows a bank to offer a

their customers a way to interact over payments, and way more full end to end service securing instant receivables or on time via a

choice. It also gives banks and PSPs a low risk, attractive service pre-agreed time schedule for partial payments. ➔

for their business customers, whilst obtaining insights in working

capital needs thus generating fee-based lending/invoicing income.

Moreover, it turns bold social responsibility statements into a

tangible ‘we have your back.’

63 Global Open Banking Report 2020  |  Open Banking and Payments

 BANKIFI

Action 2 – create fair balance and control for all They would prefer to make an invoice in the banking or payments

Instant money collection is not new, but it used to be tied to a predefined app they are used to, send it by Whatsapp or email – whichever

payment product (by the bank) like a direct debit. This is much loved tool liked by the company or the client – securely, get notifications

by the issuer (the payee), but not so much by the client (the payer) when the client has received the invoice, and pay by ‘click’ or on a

as we now find out. Many clubs and charities are suffering today time schedule. Reminders are issued and dashboards give instant

from (unnecessary) cancellations simply because people are now insight.

very wary about money just leaving the account. If you would be

able to offer your customers or donators the opportunity to say A market to lose, it is still yours today
yes/no on a monthly basis, some businesses and revenue would Banks and other licensed payment providers still have the x-factor at

be saved. hand today, so why not build all that trust and mutual insight through

your own hard-earned brand, rather than give that experience away?

Also, direct debits are quite laborious to set up and require a lot of

attention on both sides before anything can happen and the ‘Pause’ A bank that helps businesses send invoices and receive money

button does not work in all countries. Request to Pay services instantly is truly standing up for its customers and puts its ‘money

delete the sense of being out of control and redress the balance in where its mouth is.’

a world that is fragile enough as it is today.

Action 3 – free up real business time

Most entrepreneurs love their job and are passionate about their

business, yet they hate the admin and the hassle around it. As a veteran

SME banker told us recently: ‘In forty years of SME banking one truth

holds up – anything that costs less and saves time gets a thumb’s

up.’

This insight is not new and used by many players from accounting

package providers to (neo) banks and single-purpose fintech apps.

There is indeed a lot of new great technology, but we see that people

running a business do not prefer to go ‘app hopping’ after or during

a busy working day.

About BankiFi: BankiFi offers financial institutions solutions technology to enable their business customer with the
right Open Banking solutions at every stage of life: micro, SME, corporate. Banks thus monetise their Open Banking
infrastructure and so become the platform. RTP4 is available as a technology solution or as a Service, in partnership.

[Link]

Click here for the company profile

64 Global Open Banking Report 2020  |  Open Banking and Payments

 BANKIFI

Company name BankiFi

Company description BankiFi offers financial institutions technology to enable their business customer

with the right Open Banking solutions at every stage of life: from sole-trader/

self-employed, microbusiness, or SMEs through large multinational corporations

that have very sophisticated requirements. Banks thus monetise their Open

Banking infrastructure and so become the platform of choice. New service

added recently includes Request to Pay as a service.

Active since 2018

Head office Manchester, UK

Service provider type Bank in the box (bookkeeping, invoicing, payments send, receive, consolidate,

VAT tax submission, virtual accounts, lending/working capital requirements)

API connectivity for payment initiation (Payment initiation is being used as

part of multiple business microservices that BankiFi offers. Those microservices

include invoice collections (request for payment), cash management (sweeping,

automated loan repayments). [Link]

Types of supported APIs / API standard We provide a range of APIs covering payments, account information, invoicing,

supported tax digitalisation, cash forecasting, lending, accounting, and request to pay.

Our solution integrates with banks through Open Banking UK or Berlin Group-

based APIs and with accounting packages through their proprietary APIs.

Do you have redundancy and coverage No

provided by multiple integrations

(APIs & Direct Access)?

How will you handle automated refunds? Payments are all initiated securely with the bank acting as a PISP under PSD2

and Open Banking, ensuring that any payment is properly authorised by the

payer. Refunds are typically settled outside of our solution through the existing

dispute management mechanisms.

How will you mitigate the risk of bank All payments are initiated through the Open Banking APIs and the platform

transactions failing? will check whether a payment has been properly executed by verifying the

transaction details made available through AIS data. When payments initiated by

the SME user are not successful, the user can simply re-initiate those payments.

For invoice collection, the platform will monitor whether or not the SME’s client

has paid their invoice and in case of a non-successful payment, a SME can use

the request for payment service to prompt its client to settle the invoice.

65 Global Open Banking Report 2020  |  Open Banking and Payments

 BANKIFI

How will you reconcile payments Our solution combines own payment data, AIS data, and invoices and through

efficiently? a sophisticated matching and reconciliation engine it ensures those are all

matched and reconciled. For transactions for which the reconciliation could not

be automated, it is possible to manually reconcile and define reconciliation rules

going forward to further automate (so the system learns as more data becomes

available).

How it works Our cloud-based business microservices cover a range of capabilities,

including invoicing, payments, request for payment, account information, cash

forecasting, tax returns and lending, and invoice financing. Banks can bundle

these business microservices and create relevant packages for their business

clients through their existing bank channels or through a standalone app.

Request to Pay is a standalone service that offers a fast track to market option

through a pure service based model, in which bank/FI and BankiFi partner.

What problem does the company solve? Urgent needs from small/micro businesses /SMEs by saving them time and

money through managing bookkeeping, banking, and tax submissions in one

place: through the bank channel they know and like. It so also allows banks to

monetise their Open Banking infrastructure by allowing them to offer business

customers accounting and banking services wrapped around their professional

life through the bank’s channel of the customers’ choice. This way banks can go

beyond Open APIs and offer their customers a full range of services they need to

run their business. This means going from silo product push to a business CEX.

Industries / target markets Global

Business model / pricing Cloud-enabled, service-based pricing as technology vendor or in partnership

model around Request to Pay (RTP4) as a service

Founder(s) Mark Hartley (UK) and Conny Dorrestijn (NL)

Funding rounds and investors 23 October 2019 - investment by Nationwide Building Society

Geographical coverage (operational areal) Global

Technology Reactive Streams, Akka, React, REST, Kafka, Kubernetes, Terraform, Cloud

Agnostic 

Software language Scala, AKKA

Software developement tools Github, Jira, IntelliJ Idea, Visual Code Studio

When was the core technology developed 2017/18 - ongoing

66 Global Open Banking Report 2020  |  Open Banking and Payments

 BANKIFI

Partners Microsoft, Oracle

Customers / case studies Confidential UK

Awards 2019 Fintech50 Hot Ten - [Link]

Contact [Link]@[Link] | [Link]@[Link]

Website [Link]

For the complete company profile please click here

67 Global Open Banking Report 2020  |  Open Banking and Payments

 BANK ACCOUNT-ING FROM GIG TO BIG:
FOR THE BUSINESS BY THE BANK

Invoicing Accounting

BUSINESS CUSTOMERS
FIRST- FROM GIG TO BIG
Request to
Tax returns
Pay

Account info Payments

Taking out the hassle for for the self employed
Create, send and collect invoices, do your tax return Lending &
Cash Forecast
Invoice Financing

Bank account-ing: let the bank work for you! Sweeping

EMPOWER THE SME

Invoicing Accounting g

Request to o A new bank experience for SME

Tax returns
Pay
Open banking through access to accounting
Account info Payments
packages, lenders and more.

Lending &
Cash Forecast

REQUEST TO PAY TODAY:

Invoice Financing

Sweeping
COMMUNICATE, CHOOSE, COLLECT, CONSOLIDATE

Invoicing Accounting

GROW WITH YOUR CLIENTS g

Request to
Tax returns
Pay
A growth hacking bank for expanding businesses
Connect to the ERP, manage multiple bank accounts, Account info Payment

access to tailor made credit, forecasts and nudges –

s
facilitating finance and data in one place: Lending &
Invoice Financing
Cash Forecast

Bank account-ing: let the bank work for you! Sweeping

B [Link]
 Company name Unnax

Company description Unnax is an all-in-one technology provider for financial companies. Our tech­

nology stack provides all the tools businesses need to build first-class financial

services, whether it be Open Banking data aggregation and analysis, instant

payments, KYC, or emoney services.

Active since 2016

Head office Barcelona

Service provider type Open Banking enabler

API connectivity for payment initiation

API connectivity for data retrieval

TPP checking & repository

End user solutions and propositions

Types of supported APIs / API standard The Unnax core system is designed to adapt to any PSD2 provider API with

supported minimal customisation required.

Do you have redundancy and coverage Yes

provided by multiple integrations

(APIs & Direct Access)?

How will you handle automated refunds? Merchants can use the same functionality that processes pay-in operations to

make pay-outs to users in the event a payment has to be refunded.

How will you mitigate the risk of bank The Unnax system has built-in connection redundancies and uses PSD2’s order

transactions failing? status verification functionalities to check if orders are complete.

How will you reconcile payments The Unnax system emits an automated callback with a unique user code for

efficiently? each transaction, allowing the merchant to identify each money movement and

reconcile it.

How it works Unnax provides a cloud-based financial technology platform that businesses

can integrate modularly to build financial products and services. Our products

take the form of highly flexible APIs that can be used for B2B and B2C use

cases and are fully PSD2-compliant.

What problem does the company solve? Unnax technologies help businesses automate critical processes such as

data aggregation and analysis for decision-making, regulatory-compliant user

onboarding, and payment operations. By adding greater intelligence to these

processes, companies can be faster and more effective, resulting in reduced

costs and better user experiences.

69 Global Open Banking Report 2020  |  Open Banking and Payments

 Industries / target markets Financial Services, Banking, Ecommerce, Enterprise Software, Insurance,

Telecomms, and more.

Business model / pricing Unnax pricing is project-specific and based on consumption.

Founder(s) Jordi Pérez Roselló, Julián Díaz Santos

Funding rounds and investors Unnax’s latest funding is a Series A round of EUR 7 million.

Geographical coverage (operational areal) Spain, Portugal, France, Italy, Mexico

Technology Cloud native

Software language Python & GO

Software developement tools Not applicable

When was the core technology developed 2016

Partners GDS Modellica, Círculo de Crédito

Customers / Case studies Information provided upon request

Awards Not applicable

Contact info@[Link], +34 932 20 51 99

Website [Link]

For the complete company profile please click here

70 Global Open Banking Report 2020  |  Open Banking and Payments

 Everything you need to build
first-class financial services
WHAT WE DO:

• Account Aggregation • Payment Initiation • IBANs and Wallets

• Financial Indicators • Identity Verification

WHY CHOOSE US :

01 02 03

Regulation as a Service Modularity User-centric

Provide regulated From single-solution Open Banking is about

services with no burden implementations to full offering great customer
for your business. end-to-end infrastructures. experiences.

[Link] I info@[Link]
 Aite Group
Balancing Risk and Customer Experience in the World of Open Banking

About Ron van Wezel: Ron van Wezel is a senior analyst for Aite Group’s Retail Banking &
Payments practice. His research covers market and regulatory trends in the payments space, with
a focus on Europe.

Ron van Wezel    Senior Analyst    Aite Group

Introduction: the trend to Open Banking and - Financial services, eg money transfer, credit card repayments:

open payments One promising use case is to combine PIS with AIS to obtain a

Around the world, banks are opening up their customers’ financial data real-time credit score on a customer and provide instant loans at

(with the customers’ consent) to third parties through Open Banking. the POS (POS finance).

Open payments are one of the opportunities that are unlocked by this

global trend. Open payments are account-to-account payments that Business drivers for open payment acceptance:
are initiated by the PSP (Payment Service Provider) directly from the reducing cost and risk
customer’s bank account (with the customer’s consent) and credited Online merchants have a growing interest in adding open payments

to the merchant’s account. as a new payment method to their checkout page, as open payments

can offer several advantages over cards. Research shows that con­

Open payment use cases version and cost reduction are the primary drivers for merchants to

Open payment use cases can help companies to provide better adopt open payments as a payment method (see figure).

payment experiences, not only for ecommerce, but also in other

online environments to replace legacy payment methods such as Figure: Primary Drivers for Merchants to Adopt
bank transfers and checks. Examples include the following: Open Payments
- High fee environments, eg travel industry/airlines, luxury goods:

Open payments enable high-value purchases (no risk), eliminate

chargebacks, and reduce cost;

- Repeat businesses with high velocity and returning customers:

Such businesses can offer loyalty programs to convert consumers

to open payments;

- Gaming/gambling industry: Clients are more used to a wider choice

of payment methods, as issuer risk policies limit the use of cards;

- Companies with an online presence that only accept debit payments

such as bank transfers, debit card payments, and checks: Using open

payments will improve the reconciliation of receivables, as the

payment reference is automatically included. Example: property/ Source: Aite Group interviews of 15 banks, PSPs, and payment

rental payments in countries such as the UK; solution providers in Europe, January to March 2020 ➔

72 Global Open Banking Report 2020  |  Open Banking and Payments

 Reducing the cost of acceptance is important, particularly for large open payments should at least match the cards experience. This is

merchants. Card payments are priced at a fee that includes acquirer not yet the case due to the immaturity and fragmented nature of the open

margin, interchange fee, and card scheme fees. Most of these fees payments implementation. For instance, many banks use a redirect

are priced ad valorem (ie as a percentage of the transaction value) to a browser environment to complete SCA, and the customer

to reflect the risk that the issuer and acquirer take to guarantee the journey for such implementations can be cumbersome. Also, the

trans­action. As open payments are risk free (immediately debited banks’ APIs have not reached the required performance level.

from the bank account), this will allow PSPs to charge a lower

variable fee. However, the situation will change in the coming year. Banks are

required to offer a redirect to their mobile app (if they have one),

Open payments can also help to reduce the risk of fraud. Card- which should improve the user experience for open payments—eg

not-present fraud remains a big issue for online merchants. Credit by enabling biometric authentication. Also, SCA will be enforced for

cards have been vulnerable to fraud, with card data stolen on an card payments from the end of 2020 (September 2021 in the UK),

industrial scale by organised crime rings. The use of 3-D Secure in introducing friction in the card payment journey. Open payments

combination with fraud prevention technology has enabled merchants can then at least offer a better payment experience than one-off

to mitigate credit card fraud risk, keeping fraud losses stable as a card payments (no need to type card details).

percentage of ecommerce turnover. The introduction of SCA (Strong

Customer Authentication) in Europe will further reduce card-not- Aite Group expects several pilots to launch this year to test open pay­

present fraud*. Merchants still have to deal with card fraud, however, ments. If the challenges to adoption can be successfully addressed,

as well as chargebacks on genuine transactions that are disputed open payments may reach mass adoption within a period of five

by cardholders (‘friendly fraud’). This means that open payments years.

have an advantage, as they are irrevocable and provide payment

finality. Also, open payments reduce the risk of critical data, such as * See Aite Group’s report Strong Customer Authentication: Friend

credit cards, being stolen. As a result, everything else being equal, or Foe?, January 2020.

merchants prefer bank transfer schemes.

Balancing risk management and customer

experience
The user experience is critical for any payment method to drive

con­ver­sion, and open payments are no exception. Consumers have

low tolerance for friction in the checkout process, and shopping cart

abandonment is the main issue in ecommerce. To be successful,

About Aite Group: Aite Group is an independent research and advisory company focused on business, technology, and
regulatory issues and their impact on the financial services industry. Headquartered in Boston, Aite Group works with its
clients as a partner, advisor, and catalyst, challenging their basic assumptions and ensuring they remain at the forefront of
industry trends.

[Link]

73 Global Open Banking Report 2020  |  Open Banking and Payments

Open Banking – What It Means for SMEs
and Corporates

There is no shortage of opportunities for Open Banking innovation to benefit corporates and SMEs. The advantages for

these segments can be enormous, particularly in areas including holistic finance management, account aggregation,

creditworthiness assessments, cash flow and liquidity management, credit risk scoring, automated onboarding and

identity verification, lending, Request to Pay, and many more.

 Worldline
The Paypers sat with Mathieu Barthelemy and Tom Wijnen from Worldline to discover how Open Banking stands at the heart of

digital transformation and learn about some inspiring use cases for retail and corporates born out of Open Banking

About Mathieu Barthelemy: Mathieu works as a Product Manager on the solution designed to
support Worldline’s customers in their Open Banking strategy.

Mathieu Barthelemy    Product Manager    Worldline

About Tom Wijnen: Tom is a Product Marketing Manager with extensive experience in the payment
industry. Currently he is responsible for the Open Banking Services portfolio within equensWorldline.

Tom Wijnen    Product Marketing Manager    equensWorldline

In what way can we consider Open Banking at the As such, the financial industry, in general, and banks, in particular,
heart of digital transformation and how did the pan­ have been forced to match these seamless UXs, and embrace
demic accelerate this movement? Open Banking and digital transformation to build digital capabilities.
Tom Wijnen (TW): Digital transformation and Open Banking are

both happening now. Technology coupled with regulation aiming The Covid-19 pandemic has triggered even more the need for
at boosting competition and innovation (PSD2), the customers’ digital services. Because many countries have imposed strict
needs and expectations, the current Covid-19 pandemic has lockdowns and physical services were restricted, we noticed an
increased the importance of digital transformation in the financial increase in the usage of digital services, a discovery or rediscovery
sector and forced banks to open up. of local con­s umption, and a renewed interest in the climate

challenge for end consumers. For businesses, it has been vital to

There is an increasing competition between fintechs, big techs, and follow and optimise their liquidities and to propose their services
often many of these competitors are not from the banking industry, on digital channels, to meet customer’s new needs/expectations.
but more from the lifestyle industry. These know how to connect

with a customer, to create an outstanding user experience (UX). In this context of digital transformation, Open Banking is key to

com­b ine data and services provided by a wide ecosystem of

actors which will be the fuel of the future digital experiences.

  Open Banking is key to How can banks and their partners work together to
provide the best solutions to the customer? How is
combine data and services
Worldline shaping these partnerships?
provided by a wide ecosystem TW: In this new (digital and cashless) payments ecosystem,

of actors which will be the fuel partnerships are very important. This ecosystem is built upon

multiple providers working together, each from its own position, its
of the future digital experiences.
own strengths, and together, we can provide best in class end to end

services to the customers. ➔

75 Global Open Banking Report 2020  |  Open Banking – What It Means for SMEs and Corporates
 At Worldline we build this ecosystem via a partnering program an account-based payment. And this account-based payment can

where we identify the partner, we select them and, in the end, be combined with a loyalty program provided by the retailer.

incorporate their services into our value propositions.

If you combine financial data with a more societal topic such as

Still, every partnership is different, as partners might have different Green Banking, you can create increased awareness of environ­

strengths, scope, target different client segments, etc. This is one mental issues covered by a service, where based on your account

thing we learned over the last years, but also during the e-Payments data you can understand what your carbon footprint is and how

Challenge, a digital event organised by Worldline, which is a much you are spending on, within your purchases.

concrete example of how we invest in building these partnerships.

In this event, dedicated to payments and innovations that are MB: Measuring your carbon footprint is a first step, and doing so it

set to shape the e-payments ecosystem, we asked our clients is not just a buzz word, as humanity needs to act in environmental

to come up with a challenge and we asked fintechs to provide a matters to reduce their carbon footprint and switch to cleaner energy

solution for that. We had over 34 fintechs covering 16 challenges resources; as such, there is a lot to do in the financial markets to

from clients, all organised with the purpose to stimulate innovation, support this transition. If you are looking at the worldwide numbers

start partnerships, and enable fintechs to cooperate and work on to finance this energy transition, which is key for everyone, we are

real client cases. speaking about more than EUR 90,000 billion.

Mathieu Barthelemy (MB): In addition to these initiatives, we are Therefore, we absolutely need the financial system and the banks

already partners with several startup hubs within Europe, such as to be involved in this transition, create awareness around investing

TechQuartier in Germany, H7 in France. in socially responsible investment products, such as green bonds

for instance.

What are some Open Banking-enabled use cases for

corporates and the retail market? What where the challenges in delivering these use
TW: If you look at the Open Banking, the Payment Initiation Services cases?
and Account Information Services are only the foundation (you TW: When we started implementing Open Banking (especially

can initiate an account-based payment and/or retrieve account PSD2) we discovered there were a lot of banks or clients that we

information). In the retail markets the obvious use case is the talked to that could not make the link between the concept itself

Personal Finance Management (PFM), that gives the consumer and their daily business. Providing meaning and value behind

a way to manage their finances, and BFM for business finance. Open Banking convinced us to work on these use cases.

But these propositions are not so new. We have mentioned

previously that the optimisation of liquidities is a strong challenge Instead of saying to our customers that ‘we can help you reach every

for businesses. Hence, we really foresee strong interest in the bank in Europe’, we let them know that we can give their client an

development of ‘augmented’ cash management tools combining overview of all its financial services and do an analysis on it (exactly

data analysis with payment means such as: split payment, Buy Now state when he needs a loan or when he has a surplus on his account,

Pay Later features, or Request to Pay. and he needs some advice on that). Also, if you dig deeper in these

use cases, you will see that the clients will have different needs.

In the retail market the account-based payment can challenge You can have people that find it good enough to just give them an

the card payment both online as well as in-store. First preliminary overview of their financial situation, or others that really want to have

indications show that up to 20% of the volume will move towards financial advice, or even have their carbon footprint measured. ➔

76 Global Open Banking Report 2020  |  Open Banking – What It Means for SMEs and Corporates
 MB: It`s very important to be selective in choosing the right

technology partners. When we search for different partners, we

analyse if they meet our needs, which are reflected in the different

use cases. Moreover, you have to build up a whole ecosystem of

partners, as you need one partner for one use case and another

for another one.

About Worldline: Capitalising on a strong PSD2 expertise, Worldline can support banks to explore their envisioned
Open Banking strategy and support companies to capture the opportunity Open Banking brings them. For this Worldline
provides a comprehensive Open Banking portfolio based on modern, scalable, flexible, and safe solutions derived from
years of experience in the financial industry. Together with a community of partners we have built strong value propositions
to cover different use cases.

[Link]
Click here for the company profile

77 Global Open Banking Report 2020  |  Open Banking – What It Means for SMEs and Corporates
 Company name Worldline

Company description Worldline is the European leader in the payment and transactional services

industry. With innovation at the core of its DNA and thanks to a presence in

30+ countries, Worldline is the payment partner of choice for merchants, banks,

public transport operators, government agencies, and industrial companies,

delivering cutting-edge digital services.

Active since 1973

Head office Bezons, France

Service provider type Open Banking enablers

API connectivity for payment initiation

API connectivity for data retrieval & value-added services on the data

Consent management

End-user solutions and propositions

Fraud/risk/security

Types of supported APIs / API standard Types: API REST

supported Standards: Berlin Group, Open Banking, STET

Do you have redundancy and coverage Yes, we support both API’s and other integrations with eg pay-pages

provided by multiple integrations (APIs &

Direct Access)?

How will you handle automated refunds? Please contact for more details

How will you mitigate the risk of bank There are several models available in our solution which can lead to a more or

transactions failing? less guaranteed transaction. In the basics, there is a constant monitoring of

availability on the reach of the banks and a possibility to poll the status of the

transaction.

How will you reconcile payments The payment reconciliation is done by the PSU (incoming payments on the PSU

efficiently? bank account) in conjunction with the transactional data provided by the TPP.

How it works Worldline is a technical provider of TPP services (PISP and AISP license).

We make it possible for TPPs to handle the PIS and AIS services as described in

the PSD2 and Regulatory Technical Standards (RTS) and provide:

- Standard PIS and AIS APIs which can be called upon

- A developer portal with sandbox where the APIs can be tested by the clients

(merchants, corporates, etc.)

- A reach directory containing the banks which can be reached

[Link]

and-pressreleases/pr-2018_07_16_01.html ➔

78 Global Open Banking Report 2020  |  Open Banking – What It Means for SMEs and Corporates
 How it works - continued Our platform comes with all the facilities to manage your APIs in order to make

the glue between your own resources, services exposed by partners, and

Worldline assets on payment, authentication and digital services. Powerful

monetisation and invoicing features are included to help you define and run

new business models.

What problems does the company solve? The payment landscape is rapidly changing and the real challenge for banks

is that they have to connect to their complex back office environment before

they are able to work on implementing open APIs, which required to allow third

parties and partner access to services and bank data.

Industries / target markets Financial institutions

Business model / pricing Please contact for more details

Founder(s) Please contact for more details

Funding rounds and investors Not applicable

Geographical coverage (operational areal) Europe (France, Netherlands, Luxembourg, Belgium, Germany, Spain, Italy, UK,

Switzerland, Austria, Eastern Europe, Baltics, and Nordics)

Presence in Asia and Latin America

Technology Cloud enabled

Software language Please contact for more details

Software developement tools Please contact for more details

When was the core technology developed Please contact for more details

Partners Please contact for more details

Customers / Case studies Credit Europe Bank N.V., Commerzbank, Crelan, Bank J. Van Breda & C°,

vdk Bank, Europabank, Crédit Municipal, CPH Banque, and Comdirect Bank AG

Awards PayTech / Ovum Innovation Award 2019 for Open Banking

PayForum Award 2018 for API Management

Contact (phone number / email address) [Link]@[Link]

Website [Link]

For the complete company profile please click here

79 Global Open Banking Report 2020  |  Open Banking – What It Means for SMEs and Corporates
2020
THE RISE OF OPEN BANKING
HOW TO CAPTURE
THE OPPORTUNITIES?

EMBRACE THE CHALLENGES

OF DIGITAL TRANSFORMATION
TO BOOST BUSINESS OPPORTUNITIES

• Account based payments for • Green banking

e-commerce and in-store
• E-commerce and in-store
• Business financial account based payment
management & cash
• Personal finance
management
management
• Digital lending and consumer
• Identity and credit scoring
finance
• Request to Pay and
e-invoicing

WORLDLINE OPEN BANKING SERVICES

WILL HELP YOU TO:

Gather account data Analyse data for making

from banks in Europe personalized offers

Initiate a payment anywhere Team up with

from any bank in Europe the right partners

[Link]
 HSBC UK
The Paypers interviews Nadya Hijazi, Managing Director & Global Head of Digital (GLCM) at HSBC to learn more about the

Open Banking journey so far at the bank and future perspectives

About Nadya Hijazi: Nadya is responsible for the delivery of the digital strategy for HSBC’s digital
platforms across the commercial and global banking customers. These range from global platforms
to the bank’s new mobile first business banking proposition. A wide range of connectivity forms
the cornerstone of our strategy including APIs, SWIFTNet, Host-to-Host, browser, and a range of
servicing capabilities.

Nadya Hijazi    Managing Director and Global Head of Digital (GLCM)    HSBC UK

Could you provide more details about the Open We were the first UK institution to apply Open Banking data to loan

Banking journey so far at HSBC? What Open Banking and mortgage underwriting; we were an early leader in Personal

propositions and use cases does HSBC provide to Financial Management with ‘Connected Money’ and Artha by First

corporates and SMEs? How are APIs transforming Direct. In the near term we are testing an institutional Pay by Bank

treasury? proposition using a partner-based approach.

At HSBC, our API Open Banking propositions are categorised

across Regulatory and Product & Partnerships. HSBC has seen To keep moving at pace, we have repeatedly launched standalone

significant customer demand and we’re currently receiving 4 million ‘beta’ apps that enable direct customer engagement and feedback.

API calls a day. We take the learnings then prioritise features in our core apps based

on real customer behaviour.

  We`ll see an increase in API Product APIs

deployment beyond payments and Since launching in 2019, our Treasury services APIs are now live in 28

markets for payments and 53 markets for account enquiry and status,
account enquiries as banks enable access
and we expose SWIFT GPI services in 36 markets. In October 2019,
to account opening, KYC capabilities, and
our suite of Collections APIs went live in Hong Kong, in partnership
Authentication-as-a-Service. with SWIFT, securing HSBC first mover advantage and defining API

standards for the market.

Regulatory APIs HSBC’s APIs provide secure real-time access to a range of treasury

Our regulatory APIs are now live in 16 different markets and have services directly from the treasurers Enterprise Resource Planning

nearly 100 partner firms accessing our services. Getting to this (ERP) and Treasury Management System (TMS) platforms.

point has required a sustained build over four years, extending our

ecosystem across the globe. The move to real-time payments is creating demand for dynamic

reporting workflows that require more real-time and interactive access

Throughout this journey, HSBC has also innovated as a consumer of to banking services. Using H2H/SWIFTNet-based connectivity,

other banks’ Open Banking services. We have adopted a position of treasurers can’t reap full benefits if they can’t monitor increasingly

innovation in partnership with other firms, enabling us to experiment dynamic account activity or make necessary liquidity decisions. ➔

across a range of use cases and customer groups.

81 Global Open Banking Report 2020  |  Open Banking – What It Means for SMEs and Corporates
 We have seen significant adoption by our customers using APIs to industry. We expect this to be addressed in the coming months.

improve their own B2C customer propositions. Customers are using

them to reduce the time it takes to onboard customers, to deliver Firstly, we anticipate adoption will be driven by customers become

real-time access to balances, to enable their customers to invest more confident with the resilience of the Open Banking ecosystem.

quicker, and for our customers to distribute loans much faster. In the UK this is largely resolved, and European markets are quickly

catching up having started 20 months after the UK. For HSBC,

In addition to our Treasury APIs, HSBC has deployed APIs in business we are seeing Open Banking payment availability of >99% during

and product lines across our wholesale business. We now have 33 core hours.

APIs live in our Securities Services business and momentum is strong

across all sectors, with HSBC standardising the most popular APIs Secondly, as more use cases come to the market the relative cost

through industry collaboration, starting with NAV pricing. advantage of direct payments versus alternative routing will become

clear and we expect this to drive conversion.

In Hong Kong, we secured a first with our open API for business

account opening, in partnership with corporate service provider Finally, with the UK implementing a refunds capability to simplify

NOVA Group. Our new payment collection API allows Hong Kong- the reversal of a credit, this addresses the concerns around any

based companies to incorporate instant electronic Direct Debit potential sources or detriment and dispute management.

Authorisation and real-time fund transfers into their own digital

service platforms. In the corporate space we expect to see greater emphasis on

quicker onboarding to ensure our customers can benefit from the

Partner APIs real-time nature of APIs either internally to improve processes/

These are helping HSBC and our customers wider ecosystems by controls, or to accelerate delivery of their B2C propositions. This

linking into different partners. Examples include our FX Flex­pay will see increased partnerships between ERP and TMS platforms,

proposition, allowing our customers to make automated interna­ intermediators, and banks to improve the customer experience.

tional payments in more than 140 currencies through a single API;

and our industry-first Bank Guarantee API, which gives our partner We also expect to see an increase in the deployment of APIs beyond

financial institutions and their clients real-time status information payments and account enquiries as banks provide customers access

on their trade guarantees. to enable account opening, use our KYC (Know Your Customer)

capabilities, expose Authentication-as-a-Service or the ability to

What do you see as key trends for 2020 and beyond manage a corporate customer’s entitlements. This will be the early

for consumers, corporates, and SMEs? And what can steps towards banks offering Banking-as-a-Service to our customers

we expect from HSBC in that respect? which will enable us to accelerate the delivery of new propositions,

For our regulatory APIs we expect to see an increase in payment- create new partnerships, and increase our distribution channels.

initiated adoption, which has been slower than hoped across the

About HSBC: HSBC is one of the largest banking and financial services organisations in the world, with operations in 64
countries and territories. We aim to be where the growth is, enabling businesses to thrive and economies to prosper, and,
ultimately, helping people to fulfil their hopes and realise their ambitions.

[Link]

82 Global Open Banking Report 2020  |  Open Banking – What It Means for SMEs and Corporates
 Senior Advisory
Open Banking – The Next Big Thing for Corporates?

About Kate Pohl: After a career in international banking with e.g. JPMChase, Citi and ING, Kate is
now a freelance consultant and advisor. She works with fintechs, banks and corporates in the
areas of financial services and innovation. Kate is a facilitator for the EBA and works with the Core
Leadership Group coaching for purpose.

Kate Pohl    Consultant and Advisor    Senior Advisory

Providing financial services to corporate clients used to be the sole Retail customers were relatively quick to embrace fintechs and

domain of traditional/incumbent banks. For years, limited choice neo/challenger banks. This allowed consumers to ‘pick the best

and barriers to changing their providers encouraged corporates and leave the rest’ unbundling and then rebundling services from

to maintain one-stop shopping relationships with their key banks. various providers. These ideas and practices began to spill over

However, this landscape has changed. into the corporate world. For example, the idea of multi-bank and

bank agnostic providers was, indeed, attractive. The unbundling

The European Union mandated the Payment Services Directive II of services – choosing the best provider for certain products -

(PSD2) to officially take effect in January 2018. PSD2 had a variety of became an option and going beyond payments was in discussion.

key impact areas including stronger consumer protections, security, Going even further than the originally mandated (PSD2) services and

and, of course, access to accounts or Open Banking. Banks had receiving information for example regarding loans, trade finance,

resisted opening up and sharing information with Third Party or foreign exchange via APIs was enticing. Some corporates were

Providers (TPPs), who they saw as competitors, until forced to do even considering cutting out TPPs altogether and building a bridge

so by the EU. The idea behind these new regulations was to create directly to their banks via API. Companies often mentioned Open

a more level playing field and to kick-start competition, at least for Banking and Instant Payments in same breath, complicating the

payments and information. situation for banks even further. Although the former was legislated,

the latter was only suggested/recommended by the regulator in

In the beginning, many banks did only what they ‘had to’ in order to Europe. Retailers and companies that needed instant or just-in-time

be compliant, hoping that the interest in Open Banking would blow services, were particularly interested to explore this combination.

over. Some Financial Institutions (FIs), who were forward thinking, The rise of startups/fintechs and their specific, very focused, product

realised that, although this might not be what they had planned and service offerings was new and exciting. Corporates had options

or hoped for, it was also an opportunity to offer their clients more and the opportunity to decide. Did they want to work directly with a

and better products and services. Incumbents began to explore startup/fintech/TPP for traditional banking services? Corporates were

additional use cases to monetise their investment. Application initially wary, however, successful startups matured and the idea of

program interfaces (APIs) made connectivity easier, although a collaboration between banks and fintechs was born. This gave many

lack of standardisation in Europe – a different story in the UK – was companies the advantage of initially working with a fintech through

a barrier to entry. A cottage industry of companies, who made (or in combination with) their ‘trusted provider’. Open Banking

translation and connectivity their reason for being, began to appear also created a need for much faster go-to-market scenarios for

in order to solve this problem for the EU. products and services in FIs. ➔

83 Global Open Banking Report 2020  |  Open Banking – What It Means for SMEs and Corporates
 Banks had to embrace the concept of digitalisation and agility Open Banking has resulted in increased competition and choice

while opening up and also rethinking their policies of offering leading to greater variety, better quality services, and more compe­

only products and services that they, themselves, had created. titive pricing. The open question is in regards to timing. It is common

Competitive pressures strengthened the concept of platform and to overestimate the speed of adoption but underestimate the impact

ecosystem. Forward looking banks and fintechs began thinking of change. Many experts believe Open Banking will mature for

beyond open banking towards open data and open finance. corporates within the next 3-5 years. We will all be watching this

space with great interest!

It could be argued that Open Banking has gone way beyond its

mandate and is helping to change the entire banking landscape in

Europe and beyond. I believe the advantages for corporates can

be enormous, but there are bumps, sharp turns, and roadblocks all

along the way. Lack of standardisation regarding APIs, the increased

threat of cyber-crime, and the lack of consistency from country to

country to region, and, in fact, globally, all remain issues. This will take

time. And because corporates tend to look at Open Banking coupled

with Instant Payments, the batch set-up of most corporates, not

to mention the availability of liquidity and investment instruments,

are not geared to an instant and open world for corporates, yet.

However, Pandora’s box has indeed been opened, and there is no

turning back.

There are a variety of questions that remain. For example, what will

be the role of neo/challenger banks vs incumbents vs fintechs for

corpo­rates in the future? My view is that those institutions that embrace

this digital, agile, and open world will not only survive, but thrive. It will

not be easy. Corporates are now being spoiled for choice and they

want the best of what the financial services sector has to offer without

necessarily having to change their policies, procedures, or banking

structures. In the end, the question is not about the potential or

benefit of Open Banking for the corporate world. For me, that is

undisputed.

About Senior Advisory: Senior Advisory stands for experience coupled with the latest market knowledge and a deep
under­standing of the financial services business. We use digitalisation and innovation to address challenges and support
opportunities working with fintechs, corporates, and banks. Senior Advisory offers advisory and consulting services as well
as coaching and training.

[Link]

84 Global Open Banking Report 2020  |  Open Banking – What It Means for SMEs and Corporates
 J.P. Morgan
Open Banking Through the Corporate Lens

About Sairam Rangachari: Sairam is currently leading the creation and execution of J.P. Morgan’s
Digital Channels and Open Banking strategy, to redefine the banking experience for corporate and
institutional customers.

Sairam Rangachari    Global Head of Digital Channels & Open Banking, Wholesale Payments    J.P. Morgan

About David Gomez: David is currently leading the implementation of J.P. Morgan’s Open Banking
services in EMEA, leveraging the PSD2 regulation to offer alternative banking services to corporate
and institutional customers.

David Gomez    Executive Director, Wholesale Payments    J.P. Morgan

Open Banking has rapidly evolved from an emerging trend to an It is critical that, alongside other banks, we take advantage of the
established presence. Indeed, the number of fintechs, apps, API calls, tech­no­­logical and regulatory enablers offered by Open Banking to
and countries supporting Open Banking capabilities globally has develop new ways to serve these corporations, mitigate persistent
grown exponentially. At J.P. Morgan alone, the quantity of API calls industry pain points, and continue innovating.
now numbers hundreds of millions a month.

Addressing treasury pain points with Open

That said, Open Banking-driven innovations have to this point been Banking solutions
largely geared towards retail banking. Traditional banks, neobanks, One pain point is evident in the need for corporate treasury teams to
fintechs, and payments service providers have brought a new set have global visibility across accounts. Due to the geographic scope
of services and user experiences to the consumer and continue of their operations, many corporates maintain numerous banks and
to innovate in the retail space. However, what has attracted less accounts and often don’t have the tools to gain a broad and accurate
attention – and is something that we have chosen focus on – is the oversight of the globally scattered balances in real-time. With Open
impact of Open Banking within, and the opportunities it brings to, Banking, we now have the ability to offer corporate treasury a real-
the world of corporate banking. time view of their balances globally and aggregated into a single

interface.
Connecting corporates with leading banking
services As a leader on the incumbent multibank reporting system, with access
We, at J.P. Morgan, are focused on helping multinationals, large to over two thousand third-party banking institutions and processing
corporations, and financial institutions (FIs) improve their day-to-day almost one million messages every month, we knew we could do
financial operations using wholesale banking products. To achieve more for our clients by leveraging these technological developments.
this vision, we are creating, contributing to, and connecting an eco­ ➔
system of banking experiences and bringing it to customers.

85 Global Open Banking Report 2020  |  Open Banking – What It Means for SMEs and Corporates
 For example, with a client’s consent, we established connectivity to The COVID-19 economy
third-party corporate APIs and, at the click of a button, proved that we Furthermore, Open Banking has already played a critical role for

can retrieve real-time balances without having to process hundreds of corporates during the COVID-19 lockdown. Forced to adapt their

thousands SWIFT transactions, interpret multiple message formats, operational processes due to governmental guidelines, corporates

or suffer from transmission delays. Instead, accurate and scalable turned to simple and secured Open Banking services to serve their

cash positions guarantee an unparalleled level of exactitude. ‘As-Is’ needs and stay efficient during these unprecedented times.

data from source can be made available for corporates to fulfil their

reporting, forecasting, and liquidity requirements. Treasury Administration services allow corporates to receive real-

time details of the authorised signers, giving them critical just-in-

Open Banking and API-enabled multibank reporting are a decisive time information about who can approve a payment or open a

step towards giving corporate treasurers an unprecedented real-time new account. Working under limited staff conditions, having the

view of their cash balances – a goal that has long been on the horizon. ability to visualise, deactivate, and reactivate users directly from

the corporate HR or TMS system has been an effective audit tool to

The corporate Open Banking ecosystem reduce errors, improve controls, and eliminate manual processing.

Similar innovation in the corporate space is picking up pace. A new It is a critical step towards the crucial digitalisation efficiency that

set of Open Banking corporate services delivered through an inte­ this crisis has highlighted as well as protect the customers against

grated secured wholesale platform will provide unparalleled access fraudulent activities.

to the corporate Open Banking ecosystem – a platform that not only

integrates with third-party banks and institutions, but also natively Conclusion
connects with our clients’ enterprise resource planning (ERP) and We believe that a huge range of market players will benefit from

treasury management (TMS) systems. the implementation of Open Banking services, but the corporate

side especially presents exciting possibilities. Creating an Open

In this open services economy, corporations will be able to expand Banking ecosystem will not only eliminate clients’ traditional pain

to new markets at a fraction of the cost by connecting, via banks like points, but crucially, bring together the parties that can address

us, to local service providers that have also adopted Open Banking these issues and ultimately automate solutions. In turn, providers

to gain a competitive advantage in their regions. One example is of banking and financial technology will identify new ways to distri­

the new ability to initiate payments on a client’s behalf with third- bute services. While some regions are further ahead than others in

party banks, through APIs, and receive real-time notification on the this new world, it’s clear Open Banking is here to stay, and enor­

status of those payments. This new economy will not only serve as mous opportunities abound.

a new distribution of banking, but also create multiple Banking-as-

a-Service providers in the corporate and FI space.

About J.P. Morgan: J.P. Morgan’s Corporate & Investment Bank is a global leader across banking, markets and securities
services. The world’s most important corporations, governments and institutions entrust us with their business in more
than 100 countries. The Corporate & Investment Bank provides strategic advice, raises capital, manages risk, and extends
liquidity in markets around the world.

[Link]

86 Global Open Banking Report 2020  |  Open Banking – What It Means for SMEs and Corporates
 Starling Bank
Anna Mitchell, Starling’s Head of Marketplace, shares the recipe behind the success of Starling and how the challenger bank is

positioned to enable SMEs to thrive in challenging times with the use of APIs

About Anna Mitchell: As Head of Starling Marketplace, Anna leads on the product development of
the Starling’s open APIs and third-party integrations across both retail and SME. Starling’s Marketplace
offers a range of complementary products customers can access in-app and link to their bank account
to enjoy extra functionality. Popular integrations currently include accounting software Xero and
communications platform Slack. Anna brings to Starling cross-sector experience of product
innovation having previously worked on OVO Energy’s smart technology propositions for electric
vehicle drivers and a number of cleantech startups.

Anna Mitchell    Head of Marketplace    Starling Bank

Since the last economic crisis, the financial services landscape has How did the Starling Bank story start?
been evolving at pace. Moreover, the quest for delivering the seamless Starling launched in 2014 and was created to offer a new kind of

customer experience, for either end-consumers or SMEs, has banking, one which made money management easier. We are a

left incumbents reeling and has pushed them to re-evaluate their digital-only bank and to date we have more than 1.4 million custo­

strategies. mers, including more than 180,000 business accounts which can

choose from personal, business, sole trader, and joint accounts.

Underserved by traditional banks and impatient with their lack of

progress in improving services, small businesses are already turning Starling’s personal, business, and sole trader bank accounts are

to alternative financial service providers for a range of products free. We also offer our customers access to several paid-for subscrip­

and services, such as payments, lending, legal advice, and more. tions including Euros, USD and, most recently, our business toolkit

Technology adoption coupled with an agile methodology for which provides book-keeping services. Additionally, we give them

developing financial products enable financial institutions to quickly the chance to use pioneering payment services which leverage our

react to customers’ needs … or as an industry-leading banker and open APIs to institutional clients. Collectively, these services aim

Starling Bank founder and CEO Anne Boden once said: ‘technology to reimagine banking for life today, putting the tools people need

could transform the way people manage their money and serve to feel good about money in the palm of their hand.

customers in a way that traditional banks hadn’t’.

What are the core challenges for SMEs and how do

open APIs and marketplaces like Starling’s help solve
these challenges?

  Technology adoption coupled In business, it pays to be connected and this is the idea behind the

Starling Marketplace which is already used by one in three of our

with an agile methodology for
business customers. Adopting an ecosystem approach from the
developing financial products outset, we launched our open APIs in September 2017, and since

enable financial institutions to then we have built up a vibrant range of integrations with third-party

products and services which customers can link to their Starling

quickly react to customers’ needs’
account through the in-app Marketplace. ➔

87 Global Open Banking Report 2020  |  Open Banking – What It Means for SMEs and Corporates
 Today’s small businesses are operating in a world where digital Starling moved quickly when the current crisis hit. It quickly got

services are crafted around their needs. As they grow frustrated accredited to lend to SMEs under the government-based Coronavirus

with the traditional way of doing banking, companies are turning Business Interruption Loan and the Bounce Back Loan Schemes.

to alternative financial service providers, fintechs, and challenger In addition, Starling formed a partnership with the lender Funding

banks that bring to the market solutions to resolve their pain points Circle, to provide GBP 300 million of lending to small businesses under

and deliver value-added services. the Coronavirus Business Interruption Loan Scheme. It is Starling’s

agile way of working that enabled it to move so quickly on all of

There are now 26 services live in the Marketplace, from accounting these fronts.

integrations with Xero and Quickbooks, and invoice insurance from

Nimbla for Starling’s business customers, to pensions from PensionBee Open Banking allows consumers and SMEs to access
and digital receipts from Flux for personal customers. The plan is to and share their data with TPPs to develop new products
continue expanding the range of services in the Marketplace and look and services – how do you secure data access/
at how we deepen some of the existing integrations to provide more transfers/ storage?
utility for customers. In addition to the Marketplace services, Starling also has a vibrant

developer community with several third-party providers, such as

Open APIs are an integral part of our technology stack delivering Emma and Yolt, which access Starling data with customer consent.

innovative solutions and better integration with customers’ banking Starling is built in the cloud with RESTful open APIs that can be

and the rest of their business tools. These API integrations help data integrated into any existing platform or used to build innovative

move between the different tools which customers use, improving new products and services. All third parties seeking to access

transparency of payments flow, which can often be another source Starling’s customer data go through an onboarding process. For open

of uncertainty for business customers for whom managing cash bank­ing applications seeking access to account information service

flow is so important. providers (AISP) and payment initiation service providers (PISP)

endpoints we follow the guidelines set out in regulation. For Marketplace

Going forward, open APIs can play a valuable role in lending too, which services which go beyond open banking, we undertake a much more

is great, because access to capital is even more critical for SMEs than rigorous due diligence assessment that incorporates information

ever before. Anything that can help improve that process will offer value. security, data protection, and fraud checks. We want to be sure the

At the end of May 2020, we raised GBP 40 million, bringing the amount services we promote to our customers adhere to the levels of

of investment raised this year to GBP 100 million and our overall total security that we as a bank want to be able to provide to our customers.

to GBP 363 million. This money will help us expand the bank, including Consumer trust is obviously integral for us as a bank and as an

services to support small businesses – so many have been hit hard exten­sion of our core offering these Marketplace integrations need

by the coronavirus emergency. to be equally reliable.

About Starling Bank: Starling is a digital bank based in the UK. Its app offers personal, business, joint, and euro current
accounts on smartphones. The Starling Marketplace offers customers in-app access to third-party financial services.
Starling also offers B2B banking and payments services.

[Link]

88 Global Open Banking Report 2020  |  Open Banking – What It Means for SMEs and Corporates
 Deutsche Bank
Open Banking and APIs: Unlocking the Benefits for Treasurers

About Moritz Strobel: Moritz Strobel is Global Head Open Banking/API at Deutsche Bank.

Moritz Strobel    Global Head Open Banking/API    Deutsche Bank

About Jose M Buey: Jose M Buey is Global Head Accounts Platform and Services for Deutsche
Bank.

Jose M Buey    Global Head Accounts Platform and Services    Deutsche Bank

Open Banking and API technology have fast become important In addition, evolving customer needs, such as the demand for instant
areas of focus for banks and their clients, both to ensure regulatory transactions, instant refunds, and instant settlements of minor insu­
compliance and to maximise the emerging opportunities, such rance claims, are also driving the technology forward. Providing instant
as enhanced client experience and a more flexible integration of execution, allowing real time account validation for fraud prevention,
banking services. Yet, with no ‘one-size-fits-all’ strategy available, or delivering real time account information is simply the new normal.
taking the first steps on this journey can be challenging. So, as Processes within treasury should reflect this, with the aim of becoming
organisations look to unlock the benefits afforded by Open Banking real-time from end to end.
and APIs, how do they ensure a best practice implementation is

achieved? Reaping the rewards

As the technology advances, its use and potential are becoming
Open Banking: ignore at your peril multifarious. From collections, payments, and liquidity management, to
The API technology that underlies Open Banking is rapidly maturing real-time FX, eKYC, and customer self-service, a host of industry trends
– not only in financial services, but in many other sectors. What is are being enabled through Open Banking and APIs (see Figure 1).
fuelling this advance?

In recent years, the advent of the second Payment Services Directive

(PSD2) has fast-tracked the development of Open Banking within

Europe, with planned similar measures in the US, APAC, and South

America set to make this a global trend. As we have seen in Europe,

fintechs were quick to capitalise on the new regulation by entering

markets that were traditionally monopolised by banks. In response,

banks have, for the most part, taken the proliferation of fintechs as

an opportunity rather than a threat, partnering with them to find new (Figure 1-Industry trends enabled by Open Banking) ➔
ways of adding value to their services.

89 Global Open Banking Report 2020  |  Open Banking – What It Means for SMEs and Corporates
 Among the key benefits to emerge is the dramatic reduction of So is there another way? Last year, Deutsche Bank launched a

friction in liquidity management processes. This can be achieved multi-year programme to modernise its Accounts Platform that

through the improvement of several core processes, for example: uses a fresh approach. The new Real Time Accounts Platform

you can enable real-time liquidity analytics, automate your account is based on microservices – an approach that might be seen as

management set-up and maintenance, even for virtual accounts, and the opposite of a ‘big bang’. Each of these microservices can be

perform instant reconciliation through real time push notifications launched independently without the need to wait for the full roll-out

which, in turn, will enable enhanced forecasting. While these may of the new core platform yet allowing you to significantly accelerate

be seen as some of the core benefits, the different features can that global roll-out. This opens the door to many new innovative

also be paired and tailored to solve issues specific to a particular real time account services for treasurers, such as more global real-

business, or even used to create whole new services to improve time API services, as well as greater insights and visibility on their

your competitive position. accounts data.

Getting the implementation right Meeting the new demands

Unlocking these real-time trends requires more than a simple connec­ As the popularity of real-time increases, organisations should begin

tion via API – to take full advantage you need to adapt to a whole working with their treasury and technology departments, as well

new way of working within treasury. So how can banks support as their banks and vendors, to see how they can best meet this

corporates as they take their first steps on this journey? growing demand. For this to be a success it is important to choose a

starting point – seeing the developments not as a single investment,

When looking to provide real-time treasury services, among the key but as part of a wider journey. It is not just about connecting to

challenges that organisations are facing is how to adapt their core an API and expecting to receive end-to-end real-time services,

banking applications, which are often years old, to support real but also changing and adapting internal processes to meet the

time. One solution is to leverage APIs to build new client-facing demands of today’s real-time world. In combination, these trends

func­tionality on top of legacy banking applications. Though this is have a significant part to play for the future, which organisations

a widely used approach, it is one that can eventually prove costly ignore at their peril.

and inefficient – since it will have to be replicated for all different

legacy systems across numerous geographies without achieving a

globally consistent client experience.

About Deutsche Bank: Deutsche Bank provides commercial and investment banking, retail banking, transaction banking
and asset and wealth management products and services to corporations, governments, institutional investors, small and
medium-sized businesses, and private individuals. Deutsche Bank is Germany’s leading bank, with a strong position in
Europe and a significant presence in the Americas and Asia Pacific.

[Link]

90 Global Open Banking Report 2020  |  Open Banking – What It Means for SMEs and Corporates
How to Build the Open Banking
Ecosystem in an Agile and Secure Way

Banks need an approach to Open Banking which fosters valuable collaborations with startups and fintech developers

and builds a powerful Open Banking community. They must look to actively partner for success, which means

harnessing Open Banking and tapping into partners who are vital to building the Open Banking ecosystem.

With banking fast transforming into a data business, safety and security are also of utmost importance. Addressing

the issue of compliance, security, fraud prevention and ensuring that account access and data is only ever given to

legitimate and regulated TPPs are key success factors in Open Banking.
 INNOPAY
INNOPAY Open Banking Monitor Shows Increasing API Focus on Business and
Community Context

About Jorgos Tsovolis: Jorgos is a consultant at INNOPAY with a degree in Artificial Intelligence.
He specialises in Open Banking & Digital Identity. At INNOPAY he has been closely involved with the
INNOPAY Open Banking Monitor and the assessment of a wide variety of banking developer portals.
He has worked on numerous PSD2 and Open Banking related projects supporting organisations to
shape their strategy, roadmap, and implementation plans.

Jorgos Tsovolis    Consultant    INNOPAY

About Name: Mounaim is an experienced strategy consultant, fascinated by the nexus of business
strategy and the rising opportunities of regulation, data, and technology. Mounaim leads the strategy
team at INNOPAY and works on innovation challenges covering digital payments (PSD2), digital
identity, and data sharing (Open Banking) for different organisations operating in the financial
ecosystem and other industry sectors.

Mounaim Cortet    Senior Manager Strategy    INNOPAY

Banks need to get their Open Banking strategy right. Our research in-class examples, and identify two trends that Open Banking business

indicates that banks seeking to claim a solid position in the Open owners need to consider in order to accelerate.

Banking landscape will need to move beyond merely offering high- INNOPAY Open Banking Monitor Shows Increasing API Focus on Business and Community Context

quality documentation, sandboxes, developer tools, and seamless

Rich API scope

Innovators in Functionality Masters in Openness

access to APIs. That is, banks need to build, grow, and nurture their

Open Banking community to strengthen their position and accelerate

Functional scope

their commercial efforts. In our view, banks that get their Open Banking
ES

strategy right will establish credibility and a footprint in the data economy BAL

as a steppingstone for future relevance and new business models.

SE
Limited API scope

HK

Starters in Opening-up Leaders in Experience

Over the past months we’ve seen banks continuing to build upon their
Basic experience Comprehensive experience
Developer experience
*Grey logo indicates limited portal accessibility, thereby complicating full assessment
INNOPAY Open Banking Monitor (OBM) – Developer Portal benchmark (update May 2020)

Open Banking offering, publishing rich API catalogues, or focusing

on providing a solid Developer Experience. In addition, various Figure 1: The INNOPAY Open Banking Monitor (updated May 2020)

new­­comers have positioned themselves in the Open Banking

land­­scape and made their debut in our Open Banking Monitor (OBM): Highlights from selected best-in-class banks
HSBC (Hong Kong), ICICI Bank (India), KBC (Belgium), Nedbank (South Since our previous update of the INNOPAY OBM (August 2019), many

Africa), Raiffeisen Bank (Australia), Spar Nord (Denmark), US Bank, banks have continued to build upon their Open Banking offerings,

and Wells Fargo (US). with new APIs and features contributing to a better Developer

Experience. ➔

In this latest release of the OBM, updated in May 2020 (see Figure 1),

we take a look at the new status quo, highlight a number of best-

92 Global Open Banking Report 2020  |  How to Build the Open Banking Ecosystem in an Agile and Secure Way
 Analysis using our Capability Model reveals different best-in-class As the best-in-class example in the Community Development category,
INNOPAY Open Banking Monitor Shows Increasing API Focus on Business and Community Context

banks in each category rather than a single clear winner (see Figure 2). Bunq provides real-life examples of how to involve the community

and increase engagement amongst users and developers.

r
Othe
APIs
API DOCUMENTATION
API CATALOGUE Information needed in order to

Banks’ increasing focus on creating a business-

Bu
Is per

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sin
mer
Functionalities available through nic
AP elo

Custo Docs al understand the API and its

es
ev

APIs

s
A
the bank’s API offering
D

co
t In PI P functions

nte
un fo u
rm b
co Is

xt
Ac AP ati lish
on

minded Open Banking community

Bank
APIs

APIs t

Inform
en

Pricin on
Paym

Core
ati
g

Capabilities
Developer

Now that our Open Banking Monitor has tracked the Open Banking
Comm ort

Portals
Docu ductio &
ility
Usabrtal

n
supp

n
Intro ration

tatio
Po
unity

men
st
Regi

landscape for some years, certain changes and trends are becoming
x
Blo wsle
N

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e
gs tte

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DEVELOPER USABILITY
Sa
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COMMUNITY DEVELOPMENT
en ts
em en

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pe nt

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Banking Community
r

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Usag
&
more evident. As depicted in Figure 3, two key trends are:

1. Bank API portals increasingly focus on business-minded visitors

Figure 2: Best-in-class banks in the OBM (updated May 2020) 2. Community development efforts rise slowly but steadily

INNOPAY Open Banking Monitor Shows Increasing API Focus on Business and Community Context

To elaborate on some key developments, we first highlight new­comer Bank API portals increasingly focus Community Development efforts
on business-minded visitors rise slowly but steadily
ICICI Bank. Firstly, with at least 250 APIs, ICICI Bank has quickly API Business Context Hosting or Participating at Events
Banks providing high-level API descriptions aimed towards decision- Banks host Open Banking related events or hackathons, or promote
makers their participation through their API portals
positioned itself as an ‘Innovator in Functionality’ and even became 2019 2020
34% Steady event increase
Over the past three
55% 70%
a top-3 performer based on its impressive API Catalogue. For customer
years there has been an
30% increase of 4% per year
26% in the number of banks
Out of this 55%, about 24% also Out of this 70%, about 36% also hosting or participating
at Open Banking events

identification and authorisation, ICICI Bank leverages India’s Aadhaar

provide high-level provide high-level
API feature information API feature information
2018 2019 2020

API Use Cases Blogs publications or newsletters

infrastructure. Combined with India’s sector-wide API strategy as part Banks promoting potential API use cases or possibilities where to apply
the API functionalities
Banks publishing blogs or sending out newsletters through their API
portals about new updates, events or other Open Banking related topics
Blogs Newsletters

of the India stack, this indicates that we can potentially expect more 2019 20% 2018: 34%
2019: 34%
2018: 21%
2019: 21%

33%
2020: 44% 2020: 23%

Indian banks to start releasing their Open Banking services soon. 2020
INNOPAY Open Banking Monitor results (update May 2020)

Secondly, the National Bank of Greece has made a significant leap

forward and now offers the best combination of a rich API Catalogue Figure 3: The two most evident trends from the OBM (updated

and Developer Usability. The National Bank of Greece offers a wide May 2020)

variety of developer tools, ranging from SDKs to Swagger and

Postman files. Additionally, it offers a virtual programming environ­ 1. Bank API portals increasingly focus on business-minded
ment for developers to manage and develop their projects. visitors
To ensure that the more business-minded visitors are triggered too,

Lastly, we want to highlight Bunq’s impressive updates that have banks increasingly cater for a wider audience on their API portals.

propelled it from being an ‘Innovator in Functionality’ to a ‘Master in As identified in our previous OBM release (August 2019), business

Openness’. One particularly interesting development is the combin­ focus can be increased by providing high-level descriptions, API

ation of two functionalities; Bunq’s ‘Access to Own Account’ allows features, and information on potential use cases. Partner use cases

its users to access their own account details through APIs and and testimonials promote creditability of brands and products and

then share the resulting applications through a dedicated GitHub substantiate customer satisfaction. When comparing the number of

repository. This enables the whole community to contribute by banks with API Business Context information in 2020 against 2019,

conti­n uing the development of these applications and adding a significant increase can be observed. Approximately 70% of the

new features. Overall, a wide variety of GitHub repositories and developer portals included in the OBM now provide some form of

community projects are available, allowing practically anyone high-level API descriptions. Of them, about 36% go the extra mile by

to create an Open Banking application connected to their own offering additional business context through API feature information

account. This is perhaps an interesting glimpse to the potential of (i.e. a clear overview of the data available through the API).

Open Banking and how it might evolve.

93 Global Open Banking Report 2020  |  How to Build the Open Banking Ecosystem in an Agile and Secure Way
 In addition, the number of banks providing information on potential Combined with the increasing number of possibilities that are enabled

API use cases or successful case studies has risen from one in five to through Open Banking, such as new APIs, we are starting to see just

one in three. To some extent, the growing use of case studies is likely how much potential such communities can have. Whether through

to be related to the fact that many banks are gradually building up collaboration on open-source projects, or by hosting hackathons with

their portfolio of partnerships and success stories as Open Banking fintech partners, the importance of a solid community has attracted

gains more traction. By choosing to publish this information on their considerable attention over the years.

API portals, however, the banks demonstrate greater awareness of

their target groups; developers are no longer the only ones looking True potential of Open Banking communities
to consume APIs, but developer portals are now also used by less Overall, it comes as no surprise that many of today’s frontrunning

technically skilled and more business-oriented visitors. banks are now reaping the benefits of their solid communities to

keep them ahead of the pack. The true potential of an Open Banking

2. Community development efforts rise slowly but steadily community starts to become apparent when the two trends stated

As shown in Figure 3, over the last three years the number of banks above (i.e. focus on a broader business-minded public and increased

that host or participate in Open Banking-related events has increased community development efforts) are combined. In order to give the

by 4% annually. This does not necessarily imply that banks are subject of community development the attention it deserves, our article

hosting or attending more events. Instead, it indicates that they are on ‘Building and leveraging an Open Banking community’ dives

more open and communicative about these efforts through their API deeper into three key considerations for banks when developing

portals in general. In addition, over the past year there has been a a community. It also discusses a variety of approaches for banks

rise in the number of banks with a blog or article section on their looking to further enhance their Open Banking communities as a

developer portal, where they publish news items about updates, cornerstone of future relevance and new business models.

recaps or teasers about events, or other Open Banking-related

topics. All these developments are centred around an increase in INNOPAY’s experience and services portfolio can help banks and

communication towards the existing and potential visitors to the non-banks to design, launch, and scale their Open Banking strategy.

API portal. This increase can be seen as evidence of these banks’ We have recently initiated a campaign to share our strategic per­spec­

stronger marketing efforts to develop a broader Open Banking tives on the role of Open Banking in establishing credibility and a strong

community, thereby increasing brand recognition as an authority on footprint in the data economy.

Open Banking and promoting engagement and product develop­

ment idea generation. If you want to know more, reach out to discuss these perspectives and

the opportunities for your organisation. Stay tuned for more updates

Different Open Banking communities serve different purposes depen­ from the INNOPAY Open Banking Monitor.

ding on each bank’s chosen Open Banking strategy.

About INNOPAY: INNOPAY is a consultancy firm specialised in digital transactions. We operate in the areas of data sharing,
digital identity, openness, cyber resilience, and digital transformation. Our aim is to help companies, organisations, and
consortia across Europe to identify and seize opportunities in a digital world in which everything is becoming a transaction.
Together with our clients, INNOPAY experts develop innovation strategies, co-create new products and services, and
digitally transform businesses. Our headquarters is located in Amsterdam.

[Link]

94 Global Open Banking Report 2020  |  How to Build the Open Banking Ecosystem in an Agile and Secure Way
 INNOPAY
Three Considerations for Building and Leveraging an Open Banking Community

About Jorgos Tsovolis: Jorgos is a consultant at INNOPAY with a degree in Artificial Intelligence.
He specialises in Open Banking & Digital Identity. At INNOPAY he has been closely involved with the
INNOPAY Open Banking Monitor and the assessment of a wide variety of banking developer portals.
He has worked on numerous PSD2 and Open Banking related projects supporting organisations to
shape their strategy, roadmap, and implementation plans.

Jorgos Tsovolis    Consultant    INNOPAY

About Name: Mounaim is an experienced strategy consultant, fascinated by the nexus of business
strategy and the rising opportunities of regulation, data, and technology. Mounaim leads the strategy
team at INNOPAY and works on innovation challenges covering digital payments (PSD2), digital identity,
and data sharing (Open Banking) for different organisations operating in the financial ecosystem
and other industry sectors.

Mounaim Cortet    Senior Manager Strategy    INNOPAY

In our most recently published version of the Open Banking Monitor Specifically, banks will be in a position to increase the number of

(OBM), we highlight the importance of an Open Banking community. developers using their APIs, obtain more direct input and feedback,

Banks are increasingly striving to entice collaboration and innova­tion signal intent for innovation, and collaborate with the aim of develo­

with – and within – a wider community of API consumers (developers ping relevant products and services. Overall, this contributes to better

and businesses). The developer portals assessed in the OBM are facilitation of API ideation and use-case development to drive reach

basically the ‘shop windows’ through which banks do so. In order and adoption among end users of new Open Banking-enabled

to become ‘Masters in Openness’ and to position themselves at the applications.

heart of this vibrant ecosystem, banks need to combine a rich API

offering with a solid community-building and engagement strategy. Three key considerations in community building
To support banks who are either starters in opening up or are seeking

As a cornerstone for competitive advantage, banks must actively to boost their API uptake, we have identified three key considerations

invest in such a strategy to develop strong community relationships. when building and enhancing a developer community (see Figure 1).

Indeed, merely offering high-quality documentation, sandboxes, In a previous OBM release, we distinguished two key activity streams

developer tools, and seamless access to APIs is not enough to win. to create traction and promote engagement. With these three concrete

In addition, banks are now competing on an ecosystem level rather considerations for banks, we now put this into an actionable context.

than just a product level. If these relationships are built, maintained, We further elaborate and explain these considerations by high­

and nurtured over time, the whole community will drive innovation lighting insightful examples from banks included in our most recent

in an ecosystem that revolves around the bank’s own APIs. release of the OBM. ➔

95 Global Open Banking Report 2020  |  How to Build the Open Banking Ecosystem in an Agile and Secure Way
 Three Considerations for Building and Leveraging an Open Banking Community

Target audience Community purpose Scope of offering

Blogs and articles are used to translate strategic implications into
Decide on addressing and reaching out Decide on purpose of the community to Consider the size and type of the a recognisable business context. This often results in high-level
to technically-oriented developers, focus on quality of input (e.g. through customer base that are addressable
business-oriented decision-makers or a
combination of both
partnerships) or on first building a strong through specific API functionalities
descriptions of APIs or examples of successful implementations in
community (e.g. through an interactive,
open community setting
the market. Additionally, some banks translate high-level API product

descriptions into tangible examples for business settings.

Figure 1: Three key considerations for banks in Open Banking

community building Examples include:

• ABN AMRO provides more descriptive content through a success­ful

1. Target audience case study on its partnership with BUX’s implementation of ABN’s

Deciding on the target audience is a crucial step in determining how Tikkie;

the developer portal can take account of preferences of third parties. • Starling and Deutsche Bank take this a step further by providing

Due to PSD2 and the increasing traction around Open Banking, applications for B2C or B2B2C solutions, respectively;

business-minded individuals are exploring the possibilities of APIs • BBVA and Nordea provide in their articles high-level descriptions

ever-more frequently. As such, developer portals increasingly serve of the APIs and their implications for businesses;

developers with a technical background, decision-makers with a • Deutsche Bank broadens this scope with mainly dedicated blog

business background, or a combination of both. This is reflected in posts to further engage fintechs and developers, but also reaches out

the type of content published, as well as the required expertise for to businesses as well as informing potential customers by sending

understanding the published content. When content is tailored for out newsletters.

and aimed at a broader audience, more potential visitors are likely

to be persuaded to take a look at the bank’s developer portal and Overall, our advice is to tailor your communication approach to your

Open Banking offering. readers to ensure that your message reaches and resonates with

the right audience – developers, decision-makers, or both. Adopting

The term ‘developers’ can cover anything from individual developers various approaches and using tailored content to reach specific

and early-stage innovators in fintech, to large established enterprises audiences promotes engagement amongst community members

involved in creating innovative API-enabled solutions. Their core focus on the developer portal.

and key activities are based on their expertise and their insight into

the technical aspects of APIs and implementations. Hence, the core There are various methods for determining your target audiences. One

premise of a developer portal is to help developers understand way is to identify personas and develop user profiles. For example,

the technical specifications of APIs. For example, Bunq – with its ABN AMRO has used personas as a tool for analysing the implications

compre­hensive Developer Experience – clearly informs individual for different target audiences. Due to the growing application and

developers. A dedicated developer corner includes an overview consumption of APIs, there is no longer such a clear-cut distinction

of API knowledge and updates, as well as tutorials on how to use between visitors with either a technical background or a business

the available APIs or where to apply them. As such, the content is one. As such, understanding the target audience enables banks to

structured across a variety of topics and different quick start guides, purposefully map content and tailor their activities to specific visitors’

allowing for quick navigation and an efficient developing process. needs. ➔

‘Decision-makers’ can include potential business clients concerned

with the product development and strategic implementation of Open

Banking solutions. Banks actively reach out to decision-makers to

encourage them to choose the bank’s Open Banking offerings.

96 Global Open Banking Report 2020  |  How to Build the Open Banking Ecosystem in an Agile and Secure Way
 2. Community purpose The banks expect greater interaction between community members

The purpose of a community is influenced by what banks would to boost the number of ideas shared, ultimately leading to an increase

like to leverage through their developer portal. Generally, the in actionable insights.

goal is to create traction around APIs to ultimately enhance API

consumption amongst businesses. Developers are often encouraged Examples include:

to contribute their ideas and feedback for creating or improving • Bunq’s ‘Reddit’-like forum solution where content can be viewed

APIs, which ultimately enhances API implementation. Depending on without registration being necessary;

the bank’s specific purpose of its portal and community, we have • Monzo’s community that facilitates interaction between developers,

observed different approaches and tools for facilitating community such as by having a section dedicated to personal introductions;

engagement. One such approach is through partnership programmes • Starling’s Slack Team for developers and GitHub repository,

– either premium programmes or more open, community-based ones. although developers can only view discussions after receiving an

The community purpose (i.e. a focus on the quantity or quality of invitation to the channel.

input received from the community) plays an important role when setting

up dedicated partnership programmes. For example, by carefully In addition, some banks (i.e. Bunq and Monzo) indicate the expe­

selecting partners based on key selection criteria, banks can focus rience and expertise of individual developers by labelling user­

on the quality of leads. In doing so, relevant developing parties can names. Community members can thus be assigned a specific role,

contribute to improving current offerings and help banks expand such as moderator and/or contributor, to facilitate interaction and

their business by bringing in their own network of potential clients. sovereignty amongst community members. Based on endorsements

Additionally, selecting members upfront helps to establish a community by other developers, contributors with extensive knowledge and

of like-minded people, which in turn enhances the community. experience are regarded as credible sources. They act as ambassa­

dors by explaining things on the bank’s behalf, and sovereignty is

Multiple banks have set up premium partnership programmes for placed in the hands of the contributors themselves. In turn, the banks

creating, extending, and improving their API offerings, with developers benefit from leveraging the expertise of the developers with the most

benefiting from various membership benefits. relevant knowledge – and their portal gains credibility – while saving

Examples include: on moderating costs and efforts.

• Capital One offers developers financial compensation;

• Commerzbank provides developers with premium support and 3. Scope of API offering
coaching through a partner manager and partner network; When deciding on their community development approach, banks

• Deutsche Bank provides early access to information, as well as need to consider not only the API catalogue at heart of their developer

building trust with new clients by using a ‘verified partner’ badge. portal, but also their customer base that can be reached through the

available APIs. For example, an API catalogue with a strong focus

Some banks steer more towards community-based programmes, towards corporates will likely have a significant corporate customer

where community access is relatively open and input from the commu­ base, and one tailored towards merchants will logically have

nity is leading. Advantages of such community-based programmes more SME-type customers. In other words, the nature of the APIs

include the broad availability of content to a wider audience and and customer base will ultimately determine what type of developers

increased contact between developers, sometimes resulting in a bank will attract, which will in turn influence how best to approach

innovative solutions. In such settings, the portal merely serves as them. ➔

platform for facilitating interaction between different parties.

97 Global Open Banking Report 2020  |  How to Build the Open Banking Ecosystem in an Agile and Secure Way
 The above-mentioned examples of Bunq and Deutsche Bank illu­ As our OBM best practices indicate, there is no one-size-fits-all

strate this more clearly. Bunq’s API catalogue and customer base have approach for building and enhancing an Open Banking community

a strong focus towards consumers and merchants. In addition, being because no two banks, communities, customers, or offerings are

a challenger bank, it has a smaller customer base than the more traditional the same. However, gaining a clear overview of these factors will

banks such as Deutsche Bank. As a result, Bunq’s community help banks to decide where to focus their efforts and how to shape

develop­ment efforts are centred around community empowerment. their approach in order to effectively build, enhance, maintain, and

This is evident from the features mentioned above, all of which serve their Open Banking community.

facilitate interaction between tech-minded consumers or merchants

experimenting with the new possibilities presented by Open Banking. Reach out to us at INNOPAY to discuss how we can support you in

your community-building efforts and broader Open Banking trans­

In contrast, Deutsche Bank’s API catalogue and customer base have formation journey.

a stronger focus on SMEs and corporates. As one of the largest banks

in the world, it is only logical that it takes a different approach by

centring its community development around the involvement of fintech’s,

corporate treasurers, and the like. This involvement consists of mar­

keting efforts and partnerships to obtain feedback and get a better

understanding of what the community wants. Just some examples

of how Deutsche Bank facilitates this include releasing frequent

publications on new APIs, possible use cases, and successful case

studies, an Access to Own (Business) Account feature, and its API

Partner network.

Conclusion
To leverage the opportunities presented by Open Banking, banks

should start by looking at it as a two-way street. After all, both

banks and API consumers stand to benefit from a well-maintained

community that explores new ideas and brings use cases to life

at scale.

About INNOPAY: INNOPAY is a consultancy firm specialised in digital transactions. We operate in the areas of data sharing,
digital identity, openness, cyber resilience, and digital transformation. Our aim is to help companies, organisations, and
consortia across Europe to identify and seize opportunities in a digital world in which everything is becoming a transaction.
Together with our clients, INNOPAY experts develop innovation strategies, co-create new products and services, and
digitally transform businesses. Our headquarters is located in Amsterdam.

[Link]

98 Global Open Banking Report 2020  |  How to Build the Open Banking Ecosystem in an Agile and Secure Way
 INNOPAY
Six Criteria for Selecting Your API Connectivity Provider to Power PSD2 Opportunities

About Annabel Keulen: Annabel is business analyst at INNOPAY. She focuses on strategic
projects around PSD2 and Open Banking for various financial service providers and non-financial
organisations. Annabel works actively on INNOPAY’s TPP Radar to track TPP market developments
and emergence of new value propositions.

Annabel Keulen    Business Analyst    INNOPAY

About Luc van Oorschot: Luc has a special interest in the opportunities that follow from (PSD2 and
Open Banking enabled) open business models team. He leads the Payments team at INNOPAY and
has worked on various challenges for all types of payment players, both on the demand and supply
side. Challenges ranged from defining strategies (e.g. market entry, growth/adoption strategies) to
implementing solutions (eg launching developer portal, build TPP community).

Luc van Oorschot    Manager    INNOPAY

When working on PSD2 opportunities, it is of utmost importance 1. Connectivity reach

to select the right API connectivity provider. Their technology The reach of providers - that is, the number of connected banks

capabilities can greatly assist you in launching a successful PSD2 per country - differs greatly with many local and regional providers

proposition for your customers, while accelerating the development operating in the market. It is important that an API connectivity

process and time-to-market. provider covers the geographical scope required for your PSD2

opportunity, as this ensures that you are not required to contract and

See our previous blog for insights in what considerations influence integrate with multiple providers to establish the required reach among

‘make or buy’ decisions for API connectivity providers. When you banks that you want to include in your service. Connectivity providers

have decided on outsourcing and buying the tedious API connectivity often follow an approach where they prioritise their connectivity-

work, you need to apply the right criteria to inform this important roadmap based on client-demands. This is an important aspect to

strategic decision. realise when you have strict timelines for realisation of your PSD2

opportunity.

As there are many different API connectivity providers - with and

without a PSD2 licence - this blog sets out the relevant criteria 2. Functional scope
for selecting an API connectivity provider to power your PSD2 The functional scope of the service offering of API connectivity pro­vi­

opportunity. Note that there is no one-size-fits-all approach, that is, ders differs, as they often focus on additional whitelabel services on

the relevance and relative weighting of the selection criteria need top of the core connectivity to bank APIs. Three types of whitelabel

to consider the specific context and business requirements of the service offerings are typically distinguished: ➔

respective PSD2 opportunity. Service providers need to grow with

the organisation as the PSD2 proposition matures and criteria evolve.

99 Global Open Banking Report 2020  |  How to Build the Open Banking Ecosystem in an Agile and Secure Way
 1. ‘raw’ API connectivity: technical aggregation of available bank 4. Connectivity to other data sources
APIs for PSD2 account information and payment initiation. This PSD2 is a legal mandate for banks to open up specific data

is typically extended with other ‘premium’ bank APIs and/or and functionality for payment account information and payment

APIs providing access to other organisations and respective initiation. There are, however, other valuable, premium bank APIs

data sources and capabilities. This functional offering forms a that open up functionality and data outside the scope of PSD2, and

ticket to play for service providers and is more a qualifier than non-bank data sources available that could be relevant for your

a differentiator. PSD2 opportunity. Examples of these non-bank data sources are

2. Feature rich functional components: functionality that is added to Chamber of Commerce, National Vehicle Authority, geo data. Some

the raw API functionality such as, specific processing of data or API connectivity providers offer connectivity to (a selection of) these

detailed analysis of payments data to identify patterns as a basis additional data sources as well through different technology means

for value added advisory services. Examples of service providers (eg APIs, screen scraping, reverse engineering).

in this category include, among others, Invers, Fintecsystems,

Plaid, Budget Insight. 5. Cost

3. Whitelabel applications: full-fledged products and capabilities that Providers support (very) different pricing models. Some go by

are offered as a service for branding by client-facing organi­sations pay-per-use, others have a subscription model, and some work

(B2C or B2B). Examples of service providers in this category with a hybrid form that combines fixed and variable costs. One-off

include, among others, Minna Technologies, Tink, Moneyhub implementation or consultancy/training costs are also common.

Enterprise, Yolt Technology Services. Despite the varying cost models, the most important factor

determining costs is the transaction volume. It is therefore valuable

Figure 1 below provides a high-level overview of the different services to assess the expected transaction volume per type of service for
Six Criteria for Selecting Your API Connectivity Provider to Power PSD2 Opportunities

per category that are offered by connectivity providers. your PSD2 opportunity before engaging with an API connectivity

provider.
WHITELABEL APPLICATIONS
Full-fledged products that is to be branded by client-facing organisation

6. Tailored requirements
Wealth management Personal finance management Accounting

Loyalty program Cash management Subscription management

FEATURE RICH FUNCTIONAL COMPONENTS

As no one organisation is identical, specific requirements can be
Functionality that is added to the raw API functionality
Transaction monitoring Invoice management Fraud detection relevant for your organisation. These can pertain, among others, to
Added value

Data enrichment Onboarding / identity verification Transaction categorisation

Credit rating calulcation (Cashflow) forecasting data protection, security, user experience, degree of control, risk

RAW API CONNECTIVITY management, compliance. It is important to identify these specific

Aggregation of available APIs
PSD2 API Premium Open
Non-Banking APIs requirements and ensure that your connectivity provider is able to
connectivity Banking APIs

meet these requirements.

Figure 1: Overview of different type of services offered by API

connectivity providers INNOPAY CAN HELP YOU SELECT THE

RIGHT CONNECTIVITY PROVIDER
3. Licence-as-a-service Partnering with a connectivity provider can greatly accelerate the

As detailed in our previous blog, some situations do not require development and time-to-market of your PSD2 opportunity and

you to have your own licence to enable your PSD2 opportunity. In INNOPAY can help you find the connectivity provider that best fits

that case you can save costs and resources required for obtaining your needs. ➔

and maintaining a licence. If this applies to your situation, the

API connectivity provider must have a licence in order to support

you. A total of 89 parties that have a PSD2 licence and offer API

connectivity services is currently operational in Europe.

100 Global Open Banking Report 2020  |  How to Build the Open Banking Ecosystem in an Agile and Secure Way
 INNOPAY has extensive cross-sectoral experience in enabling

organisations to reap the full potential of the opportunities enabled

by PSD2. Our consulting services range from defining PSD2

strategies and identifying actionable business opportunities, to

assisting organisations with obtaining their PSD2 licence and

selecting the most suitable API connectivity provider.

About INNOPAY: INNOPAY is a consultancy firm specialised in digital transactions. We operate in the areas of data sharing,
digital identity, openness, cyber resilience, and digital transformation. Our aim is to help companies, organisations, and
consortia across Europe to identify and seize opportunities in a digital world in which everything is becoming a transaction.
Together with our clients, INNOPAY experts develop innovation strategies, co-create new products and services, and
digitally transform businesses. Our headquarters is located in Amsterdam.

[Link]

101 Global Open Banking Report 2020  |  How to Build the Open Banking Ecosystem in an Agile and Secure Way
 Konsentus
Open Banking – Are You Doing Enough to Protect Your Customers?

About Mike Woods: CEO of Konsentus, Mike has significant Board level experience in financial
services and the corporate world, including being a director at NatWest Bank and Royal Bank
of Scotland. He also founded and was CEO at Aconite, a global payments technology software
company.

Mike Woods    CEO    Konsentus

For the last two years, the UK has set the pace in Open Banking At the end of August 2020 there were only three countries in the

across the EEA with the aim of driving safe, secure, and frictionless EEA without a ‘Home’ regulated TPP, a year ago this number was

data exchange between end customers, financial institutions, and nine. There are some countries with an absence or low number of

third-party providers (TPPs). TPPs, but this doesn’t necessarily mean that customers in those

countries are disadvantaged when it comes to accessing innovative

However, with the implementation on 14th September 2019 of Open Banking products and services – far from it.

PSD2 Open Banking, which mandates financial institutions to allow

regulated third parties access to customer transaction account We reported that at the end of June 2020, every country in the

data, (provided customer consent has been given), adoption across EEA had at least 55 TPPs approved to provide services due to

the rest of the EEA has accelerated. passporting ‘rules’ - meaning that those TPPs could provide their

products and services to customers across multiple jurisdictions.

The growth of TPPs At the end of August 2020, that number had risen to 70.

Over the last twelve months, the number of TPPs approved to

provide services has more than doubled, with the total number Whilst this brings tremendous benefits for the end-user, this should

reaching 399 at the end of August 2020. The UK accounted for raise a flag for financial institutions. No longer are due diligence

51% of all TPPs a year ago, but its share has reduced due to recent processes limited to any one country, language, or regulator.

growth in Sweden, Germany, the Netherlands, and France which Suddenly it’s become paramount to have a real-time pan-EEA view

today account for 24% of the total number. of all regulated entities so customer data and financial information

can be protected, and the Open Banking ecosystem can operate

as intended, in a secure way.

Are Open Banking API calls increasing at the

same rate?
As we’ve seen with the UK leading the way in the growth of third parties

being approved for services, the UK is also the barometer when it

comes to the number of Open Banking transactions. Konsentus

estimates that in September 2019 the UK was experiencing 173 million

Open Banking API calls per month*. That monthly figure could be

2.7 billion if the Open Banking adoption rate reaches 10% by

December 2022**. ➔

102 Global Open Banking Report 2020  |  How to Build the Open Banking Ecosystem in an Agile and Secure Way
 As with TPP growth, other countries are following the UK’s lead. To verify a TPP’s identity and know its latest authorisation status,

Taking a realistic 10% Open Banking adoption rate**– the UK, there are over 115 databases and registers from across the EEA

Germany, France and Italy could all experience monthly API calls to access. Knowing how to interpret and standardise the data

in excess of 1 billion by December 2022. The UK would reach this presents additional issues. Different languages, duplicated entries,

figure by June 2021, Germany by December 2021, France by June and missing information are just some of the issues that need to

2022, and Italy by August 2022. be taken into consideration. And, if there is a disputed transaction

or issue, the Financial Institution is liable.

API volumes (billions) to December 2022 with a 10% adoption rate

2.8
All this points to the need for real-time, on-line checking solutions
Monthly API calls (billions)

Italy
1bn API calls
2.6 August 22
2.4
2.2
France
1bn API calls so security and trust in the Open Banking ecosystem can be main­
June 22
2.0

tained – without them customer confidence and loyalty will be lost.

Germany
1.8 1bn API calls
December 21
1.6
United Kingdom
1.4 1bn API calls
June 21
1.2
1.0
0.8 *  This figure refers to the whole UK market, not just the CMA9 Banks
0.6
0.4
0.2
** For further information and methodology see “Open Banking API
0.0
Sep 19 Dec 19 Mar 20 Jun 20 Sep 20 Dec20 Mar 21 Jun 21 Sep 21 Dec 21 Mar 22 Jun 22 Sep 22 Dec 22 calls – what lies ahead”
UK DE FR IT ES PL

If levels reach anywhere near these volumes, automated risk and

fraud prevention tools are critical.

So, what are the risks and how can these be

avoided?
With a steadily increasing number of TPPs and API calls following the

same upward trajectory, what are the risks for those involved? For the

customer, the risks are low. However, for financial institutions the

risks are high – and it’s complex and time-consuming to identity these

third parties, check they’re authorised to provide the services being

requested, and to find the relevant passporting information. All this

needs to be determined at the time of the transaction request.

About Konsentus: Konsentus is a RegTech company providing confidence in the Open Banking ecosystem. Our award-
winning SaaS solution, Konsentus Verify, protects financial institutions and their customers from Open Banking fraud and
risk by ensuring account access and data are only ever given to legitimate and regulated third-party providers (TPPs).

[Link]

Click here for the company profile

103 Global Open Banking Report 2020  |  How to Build the Open Banking Ecosystem in an Agile and Secure Way
 Company name Konsentus

Company description Konsentus is a RegTech company providing confidence in the Open Banking

ecosystem. Our award-winning SaaS solution, Konsentus Verify, protects

financial institutions and their customers from Open Banking fraud and risk by

ensuring account access and data is only ever given to legitimate and regulated

third-party providers (TPPs).

Active since 2018

Head office UK

Service provider type Open Banking enablers

API connectivity for data retrieval & value-added data solutions and services

TPP checking & repository

Types of supported APIs / API standard We support all API standards

supported

How it works Konsentus Verify checks the TPP’s legitimacy by validating its eIDAS

certificate(s) in real-time with the relevant QTSP. It confirms if the TPP is

regulated to provide the services being requested by sourcing data hourly

directly from the NCA and EBA registers. An immutable log is maintained

supporting dispute management processing.

What problem does the company solve? Konsentus Verify reduces risk, fights fraud and limits liability by providing

financial institutions with consolidated regulatory data across 70+ Qualified

Trust Service Providers (QTSPs), 31 National Competent Authorities (NCAs) and

EBA Registers. This ensures they only ever provide account access and data to

legitimate and regulated third-party providers (TPPs).

Industries / target markets Financial Institutions (ASPSPs): Credit Institutions, Electronic Money Institutions

and Payment Institutions

Business model / pricing For more info please contact our sales team

Founder(s) Mike Woods, Brendan Jones, David Parker

Funding rounds and investors Mastercard and VC

Geographical coverage (operational areal) EEA

Technology Native cloud

Software language JavaScript, Python

104 Global Open Banking Report 2020  |  How to Build the Open Banking Ecosystem in an Agile and Secure Way
 Software developement tools NodeJS

When was the core technology developed 2018

Partners 25+ distribution partners across the EEA

Customers / case studies Over 100 customers including Mastercard, Moneyou, Fidor Solutions, and

Hampden & Co.

Awards Card & Payments Awards 2020: category winner. Emerging Payments Awards

2019: winner in 3 categories

Contact info@[Link]

Website [Link]

For the complete company profile please click here

105 Global Open Banking Report 2020  |  How to Build the Open Banking Ecosystem in an Agile and Secure Way
Protect your customers
from the risk of PSD2
Open Banking fraud
With Konsentus Verify be confident
that you are never putting your
customers’ data at risk
Quick and easy to deploy, Konsentus Verify is the leading on-line real-time Third-Party Provider (TPP) identity &
regulatory checking solution. We remove complexity by consolidating data across a multitude of databases and
registers, providing information to Financial Institutions through our cloud-based RESTul API service to ensure they
always provide safe and secure Open Banking services to their customers.

Konsentus Verify

Why our partners and customers choose us

Trusted data Risk reduction

Regulatory data no more We protect against fraud and warrant
than an hour old the data we supply

Single integration Rapid deployment

Single API means no need to integrate From sandbox to go-live in less than a week,
separately with multiple registers our service is easy to deploy

To find out how we can help you mitigate risk, prevent fraud and limit liability
contact info@[Link] or visit [Link]
 Company name kompany

Company description kompany is the leading regtech platform for Global Business Verification and

Business KYC (KYB) for AML compliance. Its advanced API platform and

collaborative web-based KYC workspace provide financial institutions, payment

providers, insurers, and other regulated corporations the automation platform

and tools required for Business KYC (KYB) and audit-proof business verification

for anti-money-laundering compliance. Clients include global and international

banking groups, fintechs, Big Four accounting firms, law firms, Banking-as-a-

Service and compliance platforms, as well as multinational corporations. 

Active since 2012

Head office Vienna, Austria

Service provider type End-user solutions and propositions - KYC based upon Open Banking

Regtech for real-time KYB and AML compliance

Types of supported APIs / API standard JSON RESTful API

supported

How it works kompany delivers its regtech for KYB compliance services as a federated search

system with added intelligence (i.e. artificial intelligence, machine-learning,

automation) and enhanced features. These elements work on top of the KYB

data originating from authoritative sources in an unaltered, audit proof fashion.

What problem does the company solve? kompany’s propietary global register network ensures financial institutions and

other regulated entities are always using 100% audit-proof company information
for their business verification and Business KYC (KYB) needs. The information

accessed via kompany’s network is always retrieved in real-time from its primary

source and delivered to the client time stamped, guaranteeing the highest

possible veracity. Furthermore, kompany’s services help clients serve their

own customers faster, immediately reducing their compliance costs through

automatisation and increased back-office efficiency.

Industries / target markets Banks, Payment Service Providers, Insurers, Lenders and Credit Providers, FX

Brokers, Digital Exchanges (Crypto), Investment Firms, GLEIF accredited LOUs,

Fintech platforms, Legal Firms, Tax Advisors, Auditors, Business Consultants,

Gambling, and Online Gaming Platforms

Business model / pricing SaaS and DaaS

Founder(s) Russell E. Perry and Peter Bainbridge-Clayton

107 Global Open Banking Report 2020  |  How to Build the Open Banking Ecosystem in an Agile and Secure Way
 Funding rounds and investors Latest growth round in August 2020; Global Brain Corporation, Fairway Global

Investment

Geographical coverage (operational areal) Global (North America, Oceania, South America, Asia, Europe, Africa). For an

exhaustive list of our current country coverage, please contact our Sales Team

at sales@[Link]

Technology Cloud-based and RESTful API

Software language Java (J2EE), PHP, NodeJS, Python

Software developement tools Jetbrains ecosystem tools for CI/CD and project management, Terraform,

Docker

When was the core technology developed 2012

Partners Mastercard Startpath, Oracle Scale Up programme, Deutsche Borse Venture

Network, F10, Plug and Play FinTech (US, Germany, Abu Dhabi), Member of

Austrian Blockhain Network, Founding Member of the International RegTech

Association

Customers / case studies US Tier 1 Bank, Gleif LOU, 2 CEE Banks. For more information please contact

our Sales Team at sales@[Link]

Awards CB Insights Top 60 RegTech, [Link], MarketFintech, RegTech Top 10,

Planet Compliance RegTech Top 100

Contact +43 720 882 960 | marketing@[Link]

Website [Link]

For the complete company profile please click here

108 Global Open Banking Report 2020  |  How to Build the Open Banking Ecosystem in an Agile and Secure Way
 Award-winning RegTech platform
for AML and KYB

GLOBAL BUSINESS
VERIFICATION & KYC

100% 200+ Real-time

audit-proof countries and jurisdictions access to
company information with data on 110m+ companies government registers

API WEB APPLICATION

You deserve audit-proof data.

Contact us at sales@[Link] to get started.
[Link]
 Company name TypingDNA

Company description TypingDNA is a behavioural biometrics company, protecting online users based

on how they type on their keyboards. TypingDNA has developed technology that

expands the limited biometric authentication options, not requiring specialised

sensors or advanced hardware. It works with existing keyboards and can be

used to protect a wide variety of use cases.

Active since 2016

Head office 81 Prospect St, Brooklyn, NY 11201 US

Service provider type Fraud/risk/security

Types of supported APIs / API standard RESTful API

supported

How it works TypingDNA’s authentication solution analyses users’ typing patterns captured

during a first enrolment and afterward compares them to validate the user’s

identity. The typing patterns are determined based on keystroke dynamics

analysis of the 44 keys used most of the time.

What problem does the company solve? Online frauds are on the rise and businesses across the world lose USD

4.20 trillion each year. Existing prevention methods often create negative

user experience causing customer churn. TypingDNA’s proprietary artificial

intelligence based technology is an innovative, behavioural biometrics solution

aiming to solve both user experience and security drawbacks.

Industries / target markets Banking, Financial Services, and Insurance, E-learning and online proctoring,

Governmental Institutions

Business model / pricing Software as a Service (SaaS) - Pricing is per user, billed monthly.

Founder(s) Raul Popa, Cristian Tamas, Adrian Gheara

Funding rounds and investors TypingDNA has raised a total of USD 8.8 million in funding over 5 rounds.

The latest funding was raised on Jan 4, 2020 from a Series A round led by

Gradient Ventures, Google’s AI-focused venture fund. Other investors include

EU-based fund GapMinder, Techstars Ventures, CredoVentures, Gecad Ventures,

and other prior investors.

Geographical coverage (operational areal) Global

110 Global Open Banking Report 2020  |  How to Build the Open Banking Ecosystem in an Agile and Secure Way
 Technology Cloud enabled

Software language Javascript

Javascript frameworks e.g. Angular, React, VueJS etc.

[Link]

GraphQL

Swift

Java

ReactNative

Software developement tools GitHub, GitLab, WebStorm, VS Code, Docker, Jenkins, Jira, BitBucket,

SourceTree

When was the core technology developed 2016

Partners Signifyd, GreatHorn, ProctorU, Tremend, XTN Cognitive Security, OptimalIDM,

Smarter Services

Customers / case studies [Link]

Awards FinTech Global listed TypingDNA under ‘The world’s most innovative

CyberTech100 companies that every financial institution needs to know about

in 2020’

Top 50 innovative startups in Europe (EUTOP50)

Contact contact@[Link]

Website [Link]

For the complete company profile please click here

111 Global Open Banking Report 2020  |  How to Build the Open Banking Ecosystem in an Agile and Secure Way
typing biometrics authentication

Recognize
people when
they type
[Link]/#demo

#KeystrokeDynamics #SCA #Compliance

 BBVA
The Paypers interviews Carmela Gómez Castelao, Global Head of Open Banking at BBVA, to learn more about the Open Banking

journey at the bank

About Carmela Gómez Castelao: Carmela Gómez Castelao works as Global Head of Open
Banking at BBVA. Interested in innovation, client experience and processes, Carmela is an
experienced project leader with a proven record of working in the banking industry.

Carmela Gómez Castelao    Global Head of Open Banking    BBVA

How do you see Open Banking playing out in Europe, BBVA was praised as one of Europe’s most inno­
both in terms of adoption and regulatory support? vation-centric banks; its initiatives include an open
Banks can have two different (and somewhat conflicting) roles in the innovation unit that works with fast-growing companies.
Open Banking ecosystem: on the one hand, they want to protect the Could you provide more details about the open inno­
payments information they hold on their clients, which gives them a vation journey at BBVA so far and the most recent
competitive advantage. On the other hand, they may want to take developments and fintech collaborations?
advantage of Open Banking and operate as third-party providers In the last two years, BBVA’s strategy around open innovation has

(TPPs) in order to offer new services to their clients. shifted to improving and strengthening its process for collaborating

with startups, thanks to the change of mindset and internal processes

Authorities should be aware of the competitive imbalance Open as well as a much more mature startup scene. It’s key to consider

Banking creates and the possible impact on financial stability, so that that banks are regulated entities and we need to collaborate with

the industry can seek support for a wider data-sharing right that goes companies mature enough to provide confidence to all stakeholders.

beyond just financial data.

Starting from our bank strategy and our execution roadmap, we

identify possible areas of collaboration. We search through BBVA

  Open Finance will allow Open Marketplace for the most innovative proposals, and we get

banks and other companies them linked to the most suitable business areas in BBVA. Then, we

to become part of bigger implement an internal process to help the bank and the startup

dialogue within the same parameters, define the project jointly, and
ecosystems, where clients share it with the control areas in a record time of only four days.
will perform their activity. This allows us to approve or discard projects in a very lean way.

In 2019, we carried out 18 global pilot projects, five of which are

When talking about APIs, there are some conversations pending in already in production. A few examples are the POS mobile solution

the industry, such as standardisation and sandbox. We think that by Izipay in Peru, or the improvement of internal processes in the

standardisation will make the market grow faster, centring the effort GMV Colombia Wealth Management area. Finally, with the Spanish

around providing a better service, not around the connectivity, format, company BDEO, we’ve been working with extreme success for the

and language issues. A regulatory sandbox can also help create a past two years on a streaming solution for traffic accident claims

network of regulators who share experiences and collabo­rate on that significatively reduces fraud. ➔

policy work.

113 Global Open Banking Report 2020  |  How to Build the Open Banking Ecosystem in an Agile and Secure Way
 What Open Banking propositions does BBVA develop How would you see the shift to Open Finance playing
for SMEs and corporates? out? What are the benefits?
BBVA will seek to provide all services to SMEs and corporates that Open Finance will allow banks and other companies to become

can facilitate their integration with BBVA, streamline processes, and part of bigger ecosystems, where clients will perform their activity.

promote their own ecosystems. The way we consider our operation today will probably change in the

future moving to a much more open and interrelated world, where

Our partnership approach allows us to discover their needs, so we banks as financial providers will become an important piece in the

can plan accordingly which services we should develop to help them clients’ life, to plan for their finance and future needs. This will be

solve their main pain points. We work with the community in under­ combined with a more connected approach to their lives and activities,

standing deeply their processes and which ones can be streamlined where finance will be a critical piece, but much more valuable thanks

with BBVA’s help. to this connection.

Could you please provide more details about BBVA’s

API products and the API monetization strategies at
BBVA?
BBVA’s API offering encompasses different types of APIs through

BBVA API_Market, depending on the underlying business model

we want to solve. Monetization strategies can vary very much depen­

ding on the value the partnership provides to BBVA. It ranges from

getting leads whose value depends on the market and the leads’

quality, to providing specific and valuable services.

In the US, for instance, our APIs aim to help third parties in the develop­

ment of financial services (Banking-as-a-Service model), but we

have many other examples in Mexico and Spain in which we seek to

co-create digital journeys with our partners or enhance the digitali­

sation of our client’s processes.

Our monetisation schemes are actually adapted to each type of API

and the business model behind them.

About BBVA: BBVA is a customer-centric global financial services group founded in 1857. The Group has a strong leader­­
ship position in the Spanish market, Mexico, South America and USA. Its responsible banking model aspires to achieve a
more inclusive and sustainable society.

[Link]

114 Global Open Banking Report 2020  |  How to Build the Open Banking Ecosystem in an Agile and Secure Way
 Raiffeisen Bank International AG I Member of RBI Group
Open Banking From RBI’s Perspective

About Tanja Imamovic: Having more than 15 years of experience in areas of digital transformation
and product management, Tanja is now responsible for the Open API initiative in Raiffeisen Bank
International.

Tanja Imamovic    Open API Business Owner, Group Strategy    RBI AG

About Miriam Obetkova: Miriam joined Raiffeisen Bank International at the end of 2019, taking
over responsibilities that aim to promote and further drive the Open API initiative within the bank,
such as communication and community management.

Miriam Obetkova    Group Strategy    RBI AG

In the past few years, the word Open Banking was used in an almost they collaborate and even establish new partnerships. Integration
inflationary way, setting different expectations across the world. In of banking offerings to third-party applications requires banks to
the beginning it was thought to be the next big revenue source for shift from their traditional closed – ‘bank to customer’ – business
the banking industry (Maus & Mannberg, 2019) driving the focus model into cooperative business models. The transformation that
of certain stakeholders to the return of investment. Nowadays, the most of traditional banks are undergoing today is not about being
term bears a lot of connotations as it is sometimes considered as digital but about being able to connect to other players on the
a new payment scheme or a synonym for PSD2. Although Open market. PSD2 was the first major push that forced banks into opening
Banking (at least in the European Union) started with PSD2, the and connecting to third-party providers (TPPs) and consequently
general idea goes far beyond the directive. delivered the momentum for a strategic discussion on the oppor­

tunities but also challenges that came along.

Like many other industry disruptions, Open Banking is strongly

driven by customer expectations. The technological progress in the Banks are currently trying to combat multiple challenges that Open
past decades, enhanced services provided by BigTech companies, Banking as a (r)evolution in banking industry triggered. On their ways
and the entrance of new challenger banks shaped new challenges towards enhanced services and superior customer experience,
to the traditional banking industry in the forefront with increased banks found themselves dealing with robust legacy systems. The
standards for customer experience and innovative customer regulation imposes the API (Application Processing Interface)
journeys. In order to stay part of the customer journey, banks, on technology as the means to connect and share information between
one side, need to be present whenever and wherever a customer entities, however, the complex systems that most of the traditional
might need to use their services and on the other side they need banks have represent a barrier that requires huge investments. To
to be able to enrich their own offerings with third party services. enable new ways of partner integration and collaboration, banks
Open Banking has therefore many forms, but in its strongest need to provide flexible IT infrastructure that allows for easy on- and
selling proposition it is seen as an opportunity for banks not only off-boarding of partners, with a high degree of scalability and low
to improve their customer journey, but also to transform the way operating costs. ➔

115 Global Open Banking Report 2020  |  How to Build the Open Banking Ecosystem in an Agile and Secure Way
 Moreover, banks are urged to develop capabilities that have never for cooperation between banks and TPPs, (SaltEdge, 2020)** as well

been on their agendas. Open Banking is not only about exposing as a high level of support from the bank. RBI’s subsidiary banks

APIs and sharing data, but also about consuming APIs and aggre­ established their own local developer portals where the potential

gating data from other service providers. There are still very few partners are invited to get in touch with local representatives to

cases of banks or TPPs that offer personalised products based help to facilitate their solutions into production. The local efforts

on account information, and enabled real-time functionalities are resulted in RBI having seven local developer portals from not only

currently considered rather as a competitive advantage than the PSD2-compliant countries, but also non-regulated markets. RBI

industry average. therefore developed its Group API Marketplace – a centralised

platform – that features all its publicly available APIs across its

Banking groups, such as Raiffeisen Bank International (RBI), operating markets. The Group API Marketplace has the clear vision to connect

in many countries also face the diversity of the markets they operate RBI and its subsidiary banks to a strong developer community and

in. RBI’s markets, covering Central and Eastern Europe (CEE), consist to drive innovation to further generate mutual benefits. Moreover,

of a variety of countries, all attractive from a business perspective, the creation of a so-called ‘one-stop shop’ of API offerings was

how­ever, being heterogenous in both stages and speed of adaptation later supported by findings from the survey unveiling the desire of

of Open Banking. RBI’s subsidiary banks across CEE need to pay TPPs to have a single access point to all APIs across the countries.

attention to the local specifics and adapt their business development In addition, the Group API Marketplace serves as a channel to

plans accordingly. In many countries, there is a general lack of aware­ engage with the external community which is seen as essential

ness of the benefits Open Banking can deliver. RBI, therefore, focuses when building an ecosystem.

on both building the key Open Banking capabilities and putting more

light on the concept by sharing the vision and the benefits of an RBI sees Open Banking as a partnership and cooperation model

open innovation. Participation in world-known confe­rences and that is enabled by a technology concept named Open APIs. RBI’s

establish­ment of different events that allow RBI to spread its Open charter reflects on the cooperative principles conceived almost

Banking vision, such as hackathons and knowledge-sharing work­ 200 years ago by Friedrich Wilhelm Raiffeisen and today the bank

shops, are therefore considered as important as the bank’s delivery positions these funding values as a building block for its future.

efforts. These activities also lead to new opportunities that RBI The bank also believes that partnerships and value co-creation with

seeks to seize such as beyond banking services or offerings based other players will pave the way to its overall mission to transform

on cross-industry partnerships. innovation into superior customer experience. With all these efforts,

RBI aims to create a self-governed and self-nurtured ecosystem,

As revealed in a short survey conducted with few fintechs operating where the value for customers is co-created by a joint endeavour

in CEE and supported by the findings from the SaltEdge report on of various market players.

‘Open Banking Ecosystem in Testing Mode’, there is a vital need

About Raiffeisen Bank International AG I Member of RBI Group: RBI regards Austria, where it is a leading corporate and
investment bank, as well as CEE as its home market. Around 47,000 employees service 16.4 million customers through
more than 2,100 business outlets, by far the largest part thereof in CEE.

[Link]

116 Global Open Banking Report 2020  |  How to Build the Open Banking Ecosystem in an Agile and Secure Way
 Company name ThreatMark

Company description ThreatMark brings trust to the digital world by providing cutting-edge fraud

prevention solutions. Major banks use ThreatMark’s AI-powered technology to

secure trusted banking experiences by undoubtedly validating their legitimate

users, seamlessly across all digital channels. All while securing the users most

precious assets and keeping the fraudsters away.

Active since 2015

Head office Brno, Czech Republic

Service provider type API connectivity for data retrieval & value-added data solutions and services

Fraud/risk/security

Types of supported APIs / API standard Further information upon request

supported

How it works ThreatMark leverages advanced AI/ML over a vast number of user data-points

& behavioral biometrics to ensure trust in online banking across all digital

channels. For banks and their users, ThreatMark enables seamless digital

experiences which do not require additional authentication elements nor

depend on simple transaction risk analysis.

What problem does the company solve? User identification & validation, transaction risk analysis, threat detection &

mitigation

Industries / target markets Banks

Business model / pricing We sell directly, and through partners. End-to-end product.

(Subscription based tech (pricing yearly); with price based on the end users

number, modules, and deployment)

Founder(s) Michal Tresner, Kryštof Hilar

Funding rounds and investors Two rounds; Invinit Group, Rockaway Fintech, Springtide Ventures

Geographical coverage (operational areal) Global

Technology Hybrid - on prem and cloud possibility

Software language Python, JS, Swift, Kotlin

Software developement tools Elasticsearch, TensorFlow, Keras, Docker, Jeknking, Ansible, Kibana, Logstash.

117 Global Open Banking Report 2020  |  How to Build the Open Banking Ecosystem in an Agile and Secure Way
 When was the core technology developed 2015

Partners Further information upon request

Customers / case studies Further information upon request

Awards 2019 AI Awards - Company of the Year, 2019 EY Entepreneur of the Year,

CzechInvest Startup of 2018, Bank Teach Asia 2017 - Award winner in fraud

category.

Contact info@[Link]

Website [Link]

For the complete company profile please click here

118 Global Open Banking Report 2020  |  How to Build the Open Banking Ecosystem in an Agile and Secure Way
Global Mapping of Key Players

Stay in the know! The Open Banking report 2020 features an exhaustive, unique outlay of the Open Banking ecosystem

in the guise of a thorough global infographic and industry mapping of the key solution providers and their core offerings

and solutions.
 Global Mapping of Key Players –
Who’s Who in Open Banking
An INNOPAY and The Paypers Open Banking survey has revealed that most global banks, fintechs, and investors are especially looking

to learn more about inspiring use cases and propositions enabled by Open Banking.

The research, which was conducted in May 2020 amongst over 2000 financial institutions and banks, also brought to light the need for

clear guidance with respect to who is offering what when it comes to players and enablers in the Open Banking space.

As such, our Open Banking report 2020 will feature an exhaustive outlay of the global Open Banking ecosystem in the guise of a thorough

infographic and industry mapping of the key solution providers in Open Banking and their core offerings and solutions.

The global industry mapping outlines the key players’ fact files per each core category as follows:

•O
 pen Banking enablers: Companies that enable access to bank data and payments for PSPs and developers and assuring compliance/

PSD2 compliance.

•A
 PI connectivity for payment initiation: Companies offering inter- and intra- API-led connectivity, which is a methodical way to connect

data to applications through reusable and purposeful APIs. These APIs are developed to play a specific role – unlocking data from systems,

composing data into processes, delivering Open Banking payments experiences, and designing account-to-account payments that suit

businesses and your customers.

•A
 PI connectivity for data retrieval & value-added data solutions and services: Services including, but not limited to: (raw) data

presentation, transaction categorisation, transaction enrichment, credit scoring, white-label transaction monitoring.

•C
 onsent management: Companies set to equip financial services providers with a consent-centric platform that enables them to open

up their business to external parties.

•T
 hird party providers checking & repository: Companies offering Know Your Customer, Third Party Providers Identity Verification | AML

regulation compliance in the context of Open Banking/PSD2‎.

•E
 nd-user solutions and propositions: Services related to account aggregation, personal finance management services, credit scoring,

cash management/treasury management, saving and investment services, financial wellbeing/wealth management/poverty relief solutions,

lending, marketing/brand affiliation, Know Your Customer based upon Open Banking.

•F
 raud/risk/security: Companies that include in their offering services aimed at transaction monitoring, API security, and Strong Customer

Authentication.

•B
 ank in the box/banking-as-a-service/core banking infrastructure: White-label solutions spanning across multiple core banking

modules, channels, and payment solutions to meet the operational needs of a bank.

Dive right into our mapping of the global key players ecosystem and discover the lengthy array of services and solutions that these companies

are offering, in their quest to keep up with the ever-changing customer needs and expectations. We offer our readers an educational,

exhaustive infographic, allowing them the opportunity to learn about the industry’s future perspectives and help stakeholders choose the

right Open Banking partner.

121 Global Open Banking Report 2020  |  Global Mapping of Key Players
 Mapping of Key Players

Open Banking Enablers API Connectivity for API Connectivity for Data
Payment Initiation Retrieval & Value-added
Data Solutions and Services

BANKIFI

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To use the TrueLayer logo please refer to our To use the TrueLayer logo please refer to our
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1 color
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122 Global Open Banking Report 2020  |  Global Mapping of Key Players
 Mapping of Key Players

Consent Management TPP Checking & Repository Bank in the Box /

Banking-as-a-Service /
Core Banking Infrastructure

BANKIFI
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Project Imagine

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Brand Book. Thank you!

[Link]

Full Bleed

Spacing
To ensure legibility, keep the provided clear space around Clear Space
the logo. Only use the full bleed version if space is
extremely limited.

To use the TrueLayer logo please refer to our

Brand Book. Thank you!

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123 Global Open Banking Report 2020  |  Global Mapping of Key Players
 Mapping of Key Players
End-user Propositions and Solutions (B2C and B2B)

Personal Financial Cash Management / Credit Scoring

Management Treasury Management

meniga

Savings & Investment Financial Wellbeing / Lending

Wealth Management /
Poverty Relief Solutions

124 Global Open Banking Report 2020  |  Global Mapping of Key Players
 Mapping of Key Players
End-user Propositions and Solutions (B2C and B2B)

Marketing / Loyalty / KYC Based Upon Account Aggregation

Brand Affiliation Open Banking

meniga

Security / Risk management / Fraud

API Security Transaction Monitoring Strong Customer

Authentication

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the logo. Only use the full bleed version if space is
extremely limited.

To use the TrueLayer logo please refer to our

Brand Book. Thank you!

[Link]

Full Bleed

Spacing
To ensure legibility, keep the provided clear space around Clear Space
the logo. Only use the full bleed version if space is
extremely limited.

To use the TrueLayer logo please refer to our

Brand Book. Thank you!

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125 Global Open Banking Report 2020  |  Global Mapping of Key Players
Open Banking – the Proof of the Pudding
Is in the Eating

The particularly exciting benefit of Open Banking is the potential to reduce processing times, allowing services to be

more widely accessible and secure – but, as shown in our report, WHERE the value of that is being judged and the

implications of that judgement are key measures of success for Open Banking.

An important first step for banks to leverage their role of trusted advisor, create value for their customers through APIs,

and strongly position themselves into the Open Banking play is designing and implementing a digital, secure, and

customer-centric onboarding process for all TPP identities.

 Holland FinTech
Perception Value Versus Product Value in Open Banking

About Camilla Paquette: Camilla is the Head of Operation at Holland FinTech. She has a
background in inclusive finance. Camilla has built a career dedicated to the fight for transparency
and collaboration in the fintech sector to create a more inclusive financial system.

Camilla Paquette    Head of Operation    Holland FinTech

PSD2 gave Europe the edge it needed to unleash the potential of inbox due to Covid-unleashed hackers, fraud is a top concern

Open Banking and stress test how far we can push the financial for everyone and every company. Open Banking post PSD2 gives

experience towards the customer’s benefit. It was a clear signal regulators the tools to enforce heavy penalties for AISPs and PISPs

to banks, fintechs, and the world that Europe was here for the companies who fail to maintain their security. This is the promise

financial revolution and it was going to back up big talk with what of Open Banking, an agile customer-focused financial system, but

matters most, legislation. That, however, was a few years ago, and what does it look like in practice today, and what drives it? We know

often intentions don’t manifest themselves how we expect. In the customers rule in this new age, but what drives them?

following article we’ll be looking at the theoretical implications of

Open Banking versus how Open Banking has played out, and most The key to Open Banking, in practice or in theory, is the collaboration.

importantly, what is determining its success. It’s often more costly for a company to build new expertise internally

when these competencies can easily be found outside at tech firms

The benefits of Open Banking are indisputably deeply attractive. and startups for a relatively low price. Therefore, solid collaboration is

Banks for decades had shaped themselves and their products in key in successful Open Banking. The average user doesn’t consider

such a way that talk of the customer journey or putting the custo­mer who owns iDeal, only that it is accessible in a brand’s purchasing

first did not extend beyond a few cookie cutter marketing campaigns. experience. In theory, a collaboration that provides the biggest cost

Innovation was a term for the shareholder report and not for practice. and time savings to the customer should always win. In practice, the

Open Banking promised a new way of interacting with third party perception of a product through seamless integrations and quality

companies and consumers where the customer was able to choose of these collaborations is king. What we see today is that it’s not

their preferred experience, thus driving competition and rapid about who you are and your exclusive inhouse products, but about

innovation. The agile world of fintech would naturally win in this new who you know, and how you collaborate with them.

arena, but the banks with their mountains of capital would hopefully

pick up the call and modernise. This financial experience controlled What would Google be without their APIs? What would Amazon be

by APIs with the winner being selected by the populous would without their merchants? All of these are different collaborations,

guarantee a faster financial experience. Middlemen cut out, and woven together to create a seamless brand-end user relationship.

processing times slashed. With API banking, cooperation between The most important part of Open Banking today is the end user’s

banks and third parties would dramatically improve. Better experience- the platform. This is where the customer creates their

accessibility and cost reduction would culminate in overall increased opinion of the product, ie. the collaboration then decides if it’s worth

convenience for the end user. Finally, Open Banking would come the price. A customer’s perceived value in a transaction is a far better

with heightened security. In the age of Nigerian scam artists asking indicator into success than the inherent product value or origin of

for thousands and new phishing attempts bombarding every the product. ➔

127 Global Open Banking Report 2020  |  Open Banking – the Proof of the Pudding Is in the Eating
 Yes, Open Banking reduces processing times, allows services to

be more widely accessible and secure - but WHERE the value of

that is being judged and the implications of that judgement are

key measures of success for Open Banking. Open Banking allows

the system to move back into the hands of the people. The people

chose Amazon, but what unbeknownst to them they chose a colla­

bo­ration of thousands of merchants, and tech firms woven together

by Amazon.

Banks have the funds to follow these three steps and overtake the

current lean leaders. What they lack is the infrastructure necessary

to make the plays required to put the startups and tech firms in second

place. However, banks could and hopefully, for the consumers

sake, will investigate ways of unleashing capital to fast moving tech

innovations. The more competition without consolidation, the better

for us. Open Banking of today is built on collaborations and judged

by the consumers on the platforms. Open Banking does deliver the

promises of its creators, but we have seen in practice that the per­

ception of a product is more important to judge success of a product

than the promises themselves.

About Holland FinTech: Holland FinTech is an independent ecosystem facilitator, providing access to knowledge,
guidance, to an international network of industry innovators, regulators, and investors. They enable the members of Holland
FinTech to obtain new insights, find new business partners, scout new technologies and solutions, raise investment or hire
the right people.

[Link]

128 Global Open Banking Report 2020  |  Open Banking – the Proof of the Pudding Is in the Eating
 Company name Ozone API

Company description We built Ozone API to help banks and financial institutions deliver great,

standards-based APIs to handle all the complexity of Open Banking and

Open Finance.

Active since 2017

Head office London, UK

Service provider type Open Banking enablers

Consent management

TPP checking & repository

Fraud/risk/security

Types of supported APIs / API standard Ozone API are the market leaders in standards. We help banks expose APIs

supported in line with common Open Banking standards. We currently support the UK

Open Banking standard (and we provide the official reference implementation /

sandbox for the OBIE), the FDX standard, the Berlin Group standard, and are

accredited to the FAPI and CIBA standards from the Open ID Foundation. We

will support any common open standard that emerges and help our customers

support the latest version of standards as soon as they are available.

How it works The Ozone API platform helps banks to deliver standards compliant open APIs

and handle the complexity of Open Banking. It's a thin, specialist platform that

is highly scalable, performant, and with a low cost of ownership.

What problems does the company solve? Open Banking introduces new challenges for banks and the Ozone API platform

helps banks:

- Deliver and maintain standards based APIs;

- Onboard, verify, and manage third parties;

- Handle consent management;

- Deliver a great developer experience;

- Comply with Open Banking regulation and develop commercial propositions.

Industries / target markets We support banks and financial institutions (eg E-money Institutions and

Payment Institutions) who need to deliver open APIs. We have built a global

platform and are active in many markets around the world where Open Banking

is developing.

Business model / pricing Our platform can be deployed in a bank's own infrastructure or it can be

provided as a managed service (SaaS). Please contact us to understand more.

129 Global Open Banking Report 2020  |  Open Banking – the Proof of the Pudding Is in the Eating
 Founder(s) The business was founded and is run by:

Chris Michael (CEO) – Chris has 30 years’ experience building technology

companies. Currently, he leads the development of the UK Open Banking

standard (advising as CTO), chairing the OBIE standards forum and technical

design authority, and representing the OBIE at the European Banking Authority.

Freddi Gyara (CTO) – Freddi has over 20 years’ experience as a lead developer,

enterprise architect, coach, and mentor. Currently, he is the lead technical

architect at OBIE, and the co-author of the UK standard.

Huw Davies (CCO) – Huw has 24 years’ experience in payments and financial

services, with a wealth of knowledge delivering go to market strategies at major

corporations and startups. He is the former Ecosystem Development Director

at OBIE.

Funding rounds and investors We are self-funded.

Geographical coverage (operational areal) We are global in focus and operational currently across Europe and the

Americas.

Technology The platform can be enabled on premise or provided as a managed service in

the cloud.

Software language More info upon request

Software developement tools More info upon request

When was the core technology We have developed the platform since founding in 2017

developed?

Partners Konsentus, Yapily, TecBan

Customers / Case studies More info upon request

Awards “Best Global Open Banking API Platform 2020” in the Worldwide Finance
Awards

Contact (phone number / email address) Huw Davies at +7425727975, huw@[Link]

Website [Link]

For the complete company profile please click here

130 Global Open Banking Report 2020  |  Open Banking – the Proof of the Pudding Is in the Eating
 ETPPA
Open Banking: How Can Third Party Providers Succeed?

About Dr. Ruth Wandhöfer: Dr. Ruth Wandhöfer is an expert on banking regulatory and fintech
innovation matters. After a distinguished career with Citi, Ruth is an I-NED of Permanent TSB and
Digital Identity Net, a Partner at Gauss Ventures, Strategic Adviser of the ETPPA, and Adviser to
[Link].

Dr. Ruth Wandhöfer    Strategic Adviser     ETPPA

Wait a minute, what is the question? How can TPPs succeed in PSD2 as implemented in the UK does its part to deliver this from

Open Banking? Is something not going according to plan and TPPs the regulatory side. And this is where the problem begins. Whilst

need help, advice, a strategy? the PSD2 level one text was drafted well in order to be technology

neutral and thereby protect TPP business and product continuity,

Let’s quickly remind ourselves here, the whole idea of Open Banking the second level legislation, represented by the European Banking

- and in the same breath we have to mention the Second Payment Authority’s (EBA) Regulatory Technical Standards (RTS) adopted in

Services Directive (aka PSD2) – was developed with the central 2018, forced TPPs to migrate their access-to-account technologies

objective of letting European’s fintechs in the payment space and in to dedicated interfaces, more commonly known as Application

particular third party providers (TPPs) offering account information Programming Interfaces (APIs). These APIs had to be built by banks

(AIS) and payment initiation services (PIS) strive. (also called Account Service Providers or ASPSPs in the PSD2), but

most of them struggled to do so and TPPs had to onboard these APIs

Over the years, following the First Payment Services Directive of in order to be able to exchange the relevant information with their

2007, many new types of payment service providers came to the users via this route. Unfortunately, those APIs are still of bad quality

market and some invented completely new and exciting services. across many banks in Europe, whereas the fact that the Open Banking

The plan with PSD2 therefore was to include these new services in framework in the UK standardised APIs and ensured availability,

its regulatory fold and thus to ensure consistent levels of consumer both of which helped the TPP industry a lot.

protection across the payment value chain whilst at the same time

enabling those new providers, which became to be known as TPPs, However, there are other areas, which create a problem for all TPPs

to compete with incumbent banks. At a political level the message across Europe, including those in the UK. And these, again, stem from

was clear: Europe has an emerging fintech payments ecosystem, the EBA’s RTS, which have clearly been written by people that were

which shall grow and strive and not only provide competitive vibes not aware of the different services that TPPs offer and the benefits

to the ‘old world of banking’ but also develop into a counterweight that these bring to consumers and other users. The biggest issue to

to US and Asian bigtech players. mention here is the requirement for Strong Customer Authentication,

or SCA, where the RTS and the interpretations and guidance around

Open Banking, a parallel development that occurred in the UK as a these by the EBA took no notice of user experience, user needs, and

consequence of a lack of competition in banking and payments, led benefits in the context of AIS and PIS.

to the creation of what is now an industry wide framework to enable

easier access to different types of payment and over time financial

services in general. Again, here the thrust is that competition and

easier access to more diverse services should be enabled and

132 Global Open Banking Report 2020  |  Open Banking – the Proof of the Pudding Is in the Eating
 According to the RTS on SCA, AIS have to require customers to Ralf Ohlhausen, Vice-Chair ETPPA, is also rather critical, saying,

re-authorise their TPP at least every 90 days. This effectively means ‘For over a decade, we saw flourishing TPPs in some more
that AISPs have to start from scratch and onboard their customer progressive countries, whilst others tried to keep their banking
base at least every 90 days. Many banks across Europe (not so much closed. PSD2 forced the latter to change, but the RTS introduced
in the UK luckily!) have made the user experience even worse by such mediocre standards that existing TPPs were set back and new
asking them for an SCA every time that they log in for a TPP service. ones struggle to start up. As it stands today, banks succeeded to
The EBA is now advising National Competent Authorities to encourage regain and keep control over payment certainty, user flows, real-
banks to stop asking for daily SCAs, but their RTS and guidelines have time alerts, and other automated account services. Consumers and
not been formally changed to enforce this. corporates will have to wait for innovation and convenience to come
back - hopefully with RTS2.’
The reality therefore is that users receive unexpected message alerts,

sometimes in the middle of the night, requesting them to authen­ It appears that the initial objective of fintechs to strive, compete, and

ticate themselves. These surprising prompts instil fear of fraud and grow has pivoted with policy makers and regulators at EU level into

tampering with their online accounts, rather than the previous user the opposite stance, where protecting the old banking world against

experience where TPPs could deliver timely alerts on balances, new the threat of US and Asian bigtech now seems to be the preferred

and cheaper services as well as risk alerts. From a relationship of trust strategy, whereby the stifling of TPPs is accepted as collateral

and transparency between user and TPP, the RTS allowed banks to damage. Whether this will truly deliver the benefits of innovation

step in the middle and create mistrust, fear, and friction. to users and the market overall is more than questionable. You will

surely have a view yourself….

In conclusion, Open Banking in the UK works ok for TPPs with room

for improvement with regard to the SCA dilemma. At a European level,

the EBA RTS is still creating even more fallout with issues around API

data parity, daily multiple SCA requirements, and sheer frustration of

customers of TPP services.

About ETPPA: ETPPA is the European trade association of bank-independent third party providers (TPPs) under PSD2.
It was established as a non-profit organisation in April 2019 to formalise the pre-existing Future of European Fintech
coalition founded in 2017 to join the forces of non-bank TPPs. ETPPA represents the TPP interests vis-à-vis the EU
authorities and across various European working and multi-stakeholder groups in support of creating an innovative and
competitive level playing field for Account Information and Payment Initiation Service Providers (AISPs & PISPs).

[Link]

133 Global Open Banking Report 2020  |  Open Banking – the Proof of the Pudding Is in the Eating
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