The latest news and updates from The ID Co. HQ.
FDATA Open Banking Summit: What we gave and what we took away
Last month our CEO James Varga was a panellist at FDATA’s event; Open Banking Summit 2020 – 30. in London. The event, which was attended by figures and organisations from the financial technology community, featured the first public demo of the Open Banking Directory, alongside a number of other interesting talks and discussions.
Looking ahead to 2018
With 2017 quickly drawing to a close it seems a good time to reflect on where we are with Open Banking ahead of January's implementation date. To recap, Open Banking has been developed following a lack of competition among the primary banks and will come into effect in January 2018. At this time, bank APIs will become available from the nine largest U.K. banks as mandated by the CMA.
Getting PSD2 Ready
Since the second payment service directive (PSD2) was announced, The ID Co. has been pursuing direct APIs to expand and enhance European bank coverage and provide DirectID service faster and more seamlessly than ever before.
Global Banking and Finance Review
The introduction of Open Banking and the Second Payment Service Directive (PSD2) stands to light a rocket under the financial services industry next year. From January, banks will have to open their API’s up so that merchants and vendors can access their client’s account data. And it’s about time.
Paving the way for global Open Banking standards
Open Banking comes into effect as of January 2018 forcing the main 9 banks in the UK to grant access to consumer financial data by means of direct APIs, allowing consumers to utilise their data to do more online. In combination with PSD2 (The Second Payment Services Directive), these aim to increase competition between the largest banks, encourage innovation from established corporations and start-ups and protect consumers. Whilst the EU and member states such as the UK and Germany are leading the way, similar initiatives are now being explored around the world in countries such as the United States, Canada, Australia and New Zealand.
How PSD2 and Open Banking Benefit the Consumer
In our last article, we discussed how a lack of competition among the main banks provided the motivation for the Competition and Markets Authority’s implementation of Open Banking in the U.K. We highlighted that by allowing consumers to move freely between the financial products offered by the main banks, Open Banking will allow for an evolution in consumer choice not possible under the current system in which 71% of millennials would rather go to the dentist than open a bank account.
The Journey Towards Open Banking and PSD2
A lack of competition among the primary banks provided the impetus behind the Competition and Markets Authority’s (CMA) implementation of Open Banking in the U.K. The ID Co. has played an active role in this implementation, with CEO James Varga having co-chaired the data sub group for the Open Bank Working Group. As a company, The ID Co. is also a member of FDATA. Both groups are working towards the establishment of an industry standard for Direct APIs and as members, The ID Co. has long been campaigning for access to bank data, to put consumers back in control of their personal data and identity as a firm believer that banks have an active role to play.
Finovate Fall 2017
The ID Co. attended Finovate Fall last month in New York which this year was greatly improved by the addition of two new discussion and seminar days at the tail end of the conference. Sessions on these days gave attendees the opportunity to digest and discuss concepts broached by speakers in swift seven minute presentations. The topics ranged from AI and machine learning to cyber security, whilst a lot to take in in a short space of time, this opened up to debate and discussion in the networking hall among attendees and presenters of the conference.