The fintechs unite again on Open Banking The fintechs unite again on Open Banking

Friday 07 January 2022 22h00

Fintech companies have come together to offer another strong defense of Open Banking just days after rejecting claims by Starling boss Anne Boden that the initiative had failed.

Speaking at an event hosted by Open Banking Excellence, speakers from leading fintechs including Plaid, Token and Klarna argued that Open Banking underpins the deployment of contactless payments and is poised to be rolled out. be widely adopted.

Farid Sedjelmaci, Head of EU Partnerships at Plaid, said: “Open Banking has come a long way, with over 2.5 million transactions completed each month. We are already seeing the start of a trend for hockey sticks.

He said the industry needs to come together and form a “coalition” to speak positively about open banking and “bring these benefits to consumers.”

Todd Clyde, CEO of open banking payment platform Token, said using open banking technology to top up and pay debit cards will be a “gateway drug” for consumers.

He said: “Let’s get people to use these payments and transfers because it will be a bridge and increase them to the use of Open Banking payments in a retail environment.”

The comments come after Starling Bank boss Anne Boden claimed the initiative had been a failure and failed to spark innovation in financial services.

But 50 fintech company founders accused it of stifling innovation this week in an open letter.

They claimed his actions were “uncompetitive and typical of banks trying to thwart the future of innovation in financial services.”

Open banking questions and answers

What is Open Banking?

Open Banking enables consumers and small businesses to securely share their banking and credit card transaction data with trusted third parties, who can provide them with applications and services that save them time and money. ‘silver.

It also allows people to initiate payments directly from their bank account to their beneficiary’s account, without using a card.

Why was it introduced?

Open Banking was introduced in 2018 to increase competition in the banking industry and pave the way for small businesses to challenge big banks and drive innovation.

Ultimately, it was about giving people better ways to manage their money.

So what’s the problem ?

Boden argued that Open Banking had failed to distract customers from the banks.

She told MPs last year: “Customers are not swayed to change banks because they can take their data with them. They are changing banks because they want better service.

Michael J. Birnbaum