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The development of Open Banking could pave the way for the development of blockchain in financial services?
C & # 39; has been a real reorganization of financial services since the Competition Authority and markets intervened to create the Open Banking on behalf of the UK Government.
You can now access third-party apps for the data you want to view, making it easier to collect balance sheets from various personal accounts or new business forecasts.
Every supplier that uses Open Banking to offer products and services must be regulated by the FCA or European equivalent. At present, the nine largest banks and construction companies are registered in the Open Banking Directory, and others are coming.
But the British Blockchain Association (BBA) want to use this acceptance to pave the way for blockchain-based financial services in the mainstream. Their thesis is that we now have industry approval for third-party apps; surely the time has come for the FCA to go further?
Today, al Blockchain Live London summit, Lord Bridges of Headley, vice president of the parliamentary group of all parties on Blockchain will say:
Blockchain has great potential to revolutionize our financial system. It is essential that the United Kingdom seize the opportunities that this new technology creates so that we can continue to build on our position as a global financial center in the coming decades.
With blockchain technology that helps facilitate a safer form of identity and data transactions, BBAs are eager to defend their cause in the UK financial sector. A spokesman said:
Britain has always been at the center of technological innovation and with the new revolution set on the implementation of blockchain and DLT-based technologies, it continues to be. The British Blockchain Association is already establishing itself as a leading global institution seeking to support the adoption of blockchain technologies in both the public and private sectors in the UK and around the world. Having an enviable network of space industry leaders, university professors and government ministries, the British Blockchain Association will help pave the way for this exciting technological revolution.
But which technology has brought us to this stage? Some may say that it is Open Banking, the ability to provide secure access to third-party apps to financial data and has become fully integrated in January 2018.
Francesco Simoneschi is CEO and co-founder of providers of financial APIs and specialists in open banks TrueLayer, created in 2016. As such, it works with family names in financial services to break down the barriers of the traditional bank.
Gina Clarke spoke with Simoneschi to find out more:
What happened in your field since the opening of Banking started in January?
Since the launch of Open Banking, we have secured a number of important partnerships and integrations with companies such as Monzo, Starling Bank, Zopa, ClearScore, Canopy, Plum, BitBond, Emma, Anorak and CreditLadder. In addition, we are planning a series of confidential partnerships with leading companies in the consumer, e-commerce and financial space sectors that will become operational over the next 12 months.
Using TrueLayer, companies can easily verify the identity and ownership of the account using existing customer data; view accounts, check balances and access transaction history; query bank accounts and cards to create powerful applications; and mitigate fraud and improve credit score modeling using detailed data on revenue and expenditure from users' bank accounts. For example, Zopa uses TrueLayer for a quicker earnings check, Canopy to automatically update rental information for its customers, Plum to connect its chatbot Messenger with Monzo and Starling Bank and Anorak accounts to provide more accurate and timely insurance quotes.
How are you using new technologies?
TrueLayer became one of the first companies in the United Kingdom to be licensed and registered as a payment institution by the Financial Conduct Authority (FCA) to provide information on accounts and payment services in Open Banking and PSD2. Confirmation means that we have passed rigorous safety, management and operations assessments.
This means that our financial API is incredibly secure, fast and easy to use. Basically, we have created this technical solution for which fintech companies do not have to do it. This means that they can devote time and resources to building innovative products and services for consumers and businesses. "
What have these new developments done in terms of market value?
Open Banking is an incredible opportunity both in terms of the impact it will have on businesses and consumers, and on the value of products that could be developed. For example, PwC expects the market to reach 8.1 million consumers, 2.4 million small businesses and worth 2.3 billion by the end of 2018. By 2022, PwC predicts that the sector could quadruple its value to 7.2 billion pounds.
However, the real value could be even greater because Open Banking will create opportunities for innovation in almost all company verticals. Add to that the fact that in the coming years solutions that we have not foreseen will be developed and the market value could easily be tens of billions of pounds.
What are the challenges and opportunities of new financial technology?
Personally, I believe the most important impact of Open Banking will be on financial inclusion and the credit market. Millions of people are currently unable to access traditional financial products and services.
By creating new opportunities for direct bank payments, competition and consumer choice, credit will generally be interrupted as credit institutions and banks face fierce competition. The result should be a substantial increase in the availability of funding, especially for those who have traditionally been excluded from the financial markets. This will really help social mobility. People who can not get loans, mortgages or even current accounts due to a number of factors will eventually have companies that turn to them on a fair basis.
The biggest challenge for the market is to maintain trust. Financial data is some of the most sensitive information that a company can handle and we all know that data breaches and attacks are becoming too common. Fortunately, Open Banking relies on some of the most stringent data protection and governance practices that mitigate risk. However, all those who work within Open Banking still have a profound duty to act ethically and responsibly with financial data. We also need to educate consumers and businesses on how Open Banking works, their rights to consent to information sharing and how data will be used.
Are there any obstacles you think can hinder it?
It is no secret that some of the major banks are dragging their steps in relation to the respect of Open Banking. Although this can be frustrating, in the end, everyone will have to fully respect. Fortunately, this is not slowing the development of solutions and interest in the market.
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The development of Open Banking could pave the way for the development of blockchain in financial services?
C & # 39; has been a real reorganization of financial services since the Competition Authority and markets intervened to create the Open Banking on behalf of the UK Government.
You can now access third-party apps for the data you want to view, making it easier to collect balance sheets from various personal accounts or new business forecasts.
Every supplier that uses Open Banking to offer products and services must be regulated by the FCA or European equivalent. At present, the nine largest banks and construction companies are registered in the Open Banking Directory, and others are coming.
But the British Blockchain Association (BBA) wants to use this acceptance to pave the way for blockchain-based financial services in the mainstream. Their thesis is that we now have industry approval for third-party apps; surely the time has come for the FCA to go further?
Today, at the Blockchain Live summit in London, Lord Bridges of Headley, vice president of the parliamentary group of all parties on Blockchain will say:
Blockchain has great potential to revolutionize our financial system. It is essential that the United Kingdom seize the opportunities that this new technology creates so that we can continue to build on our position as a global financial center in the coming decades.
With blockchain technology that helps facilitate a safer form of identity and data transactions, BBAs are eager to defend their cause in the UK financial sector. A spokesman said:
Britain has always been at the center of technological innovation and with the new revolution set on the implementation of blockchain and DLT-based technologies, it continues to be. The British Blockchain Association is already establishing itself as a leading global institution seeking to support the adoption of blockchain technologies in both the public and private sectors in the UK and around the world. Having an enviable network of space industry leaders, university professors and government ministries, the British Blockchain Association will help pave the way for this exciting technological revolution.
But which technology has brought us to this stage? Some may say that it is Open Banking, the ability to provide secure access to third-party apps to financial data and has become fully integrated in January 2018.
Francesco Simoneschi is the managing director and co-founder of the financial API provider and of the TrueLayer open banking experts, created in 2016. As such, he collaborates with the family names in financial services to break down the barriers of traditional banking.
Gina Clarke spoke with Simoneschi to find out more:
What happened in your field since the opening of Banking started in January?
Since the launch of Open Banking, we have secured a number of important partnerships and integrations with companies such as Monzo, Starling Bank, Zopa, ClearScore, Canopy, Plum, BitBond, Emma, Anorak and CreditLadder. In addition, we are planning a series of confidential partnerships with leading companies in the consumer, e-commerce and financial space sectors that will become operational over the next 12 months.
Using TrueLayer, companies can easily verify the identity and ownership of the account using existing customer data; view accounts, check balances and access transaction history; query bank accounts and cards to create powerful applications; and mitigate fraud and improve credit score modeling using detailed data on revenue and expenditure from users' bank accounts. For example, Zopa uses TrueLayer for a quicker earnings check, Canopy to automatically update rental information for its customers, Plum to connect its chatbot Messenger with Monzo and Starling Bank and Anorak accounts to provide more accurate and timely insurance quotes.
How are you using new technologies?
TrueLayer became one of the first companies in the United Kingdom to be licensed and registered as a payment institution by the Financial Conduct Authority (FCA) to provide information on accounts and payment services in Open Banking and PSD2. Confirmation means that we have passed rigorous safety, management and operations assessments.
This means that our financial API is incredibly secure, fast and easy to use. Basically, we have created this technical solution for which fintech companies do not have to do it. This means that they can devote time and resources to building innovative products and services for consumers and businesses. "
What have these new developments done in terms of market value?
Open Banking is an incredible opportunity both in terms of the impact it will have on businesses and consumers, and on the value of products that could be developed. For example, PwC expects the market to reach 8.1 million consumers, 2.4 million small businesses and worth 2.3 billion pounds by the end of 2018. By 2022, PwC predicts that the sector could quadruple its worth 7.2 billion pounds.
However, the real value could be even greater because Open Banking will create opportunities for innovation in almost all company verticals. Add to that the fact that in the coming years solutions that we have not foreseen will be developed and the market value could easily be tens of billions of pounds.
What are the challenges and opportunities of new financial technology?
Personally, I believe the most important impact of Open Banking will be on financial inclusion and the credit market. Millions of people are currently unable to access traditional financial products and services.
By creating new opportunities for direct bank payments, competition and consumer choice, credit will generally be interrupted as credit institutions and banks face fierce competition. The result should be a substantial increase in the availability of funding, especially for those who have traditionally been excluded from the financial markets. This will really help social mobility. People who can not get loans, mortgages or even current accounts due to a number of factors will eventually have companies that turn to them on a fair basis.
The biggest challenge for the market is to maintain trust. Financial data is some of the most sensitive information that a company can handle and we all know that data breaches and attacks are becoming too common. Fortunately, Open Banking relies on some of the most stringent data protection and governance practices that mitigate risk. However, all those who work within Open Banking still have a profound duty to act ethically and responsibly with financial data. We also need to educate consumers and businesses on how Open Banking works, their rights to consent to information sharing and how data will be used.
Are there any obstacles you think can hinder it?
It is no secret that some of the major banks are dragging their steps in relation to the respect of Open Banking. Although this can be frustrating, in the end, everyone will have to fully respect. Fortunately, this is not slowing the development of solutions and interest in the market.
