There must be tighter integration of cross-sector data and wider participation to achieve successful Open Banking ecosystems, according to leaders across financial business.

“There’s long been talk about the potential, but it hasn’t achieved its promise yet,” said Sam Everington, director of products at Starling Bank. “[Open Banking] needs to bring together more products and companies, more data, pensions, utility companies etc. which are not included at the moment, to help people automate their lives.”

Also speaking at the FinTech Connect conference was Leon Muis, chief business officer of Yolt, a money management app developed by ING Bank, has found resistance to full participation in Open Banking to be one of his personal frustrations.

“90 per cent is optional for banks; some have particular data but it’s optional [to share or use it],” he said.

He added that siloed industries must work together or risk there being a big “spaghetti of APIs.”
Speaking from a corporate customer perspective, Janko Hahn, head of treasury operations at Autoneuem Management AG, said that in his experience there are some banks that see Open Banking as a regulatory must, while others see it as an opportunity to deliver a USP.

“You can do development on your own but it’s more effective to find a partner and see if you can work on something that can help your customer base,” said Alex Yang, director CashPro

API and global open banking strategy, Bank of America. “The need for the voice of the customer is important.”

COVID-19 boosts interest in Open Banking

Experts say there is still a long way to go, but there has been an increased interest in Open Banking during the pandemic.

“Open banking has come a long way from early days, past the phase where people are asking what it is," said Charles Bennett, head of commercial product management, Bottomline. "We've seen a lot of open banking, in the consumer space

" But to date, until this year, we'd seen very little innovation around corporate. That has changed this year."

He said that Bottomline is seeing dramatic change in the level of interest from its SME customers, particularly around the payment part of Open Banking.

"There's a strong interest in people wanting to be educated about it," he added. "[The pandemic is] driving awareness and interest."

Janko Hahn said that Autoneuem Management AG had become a lot more engaged in the prospect of Open Banking this year, accelerated by the pandemic.

"This year has been an enabler for new projects," he said. "Discussion is intensifying with banks, we're talking more about APIs, technology, Open Banking, so there have been some positive consequences out of the COVID-19 situation in regard to corporates in Open Banking.”

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