Hakan Eroglu

Competition was the order of the day when the European Union opened the open banking floodgates with its revised Payment Services Directive (PSD2). The order still stands. But another impetus is now making its own waves on the back of the increased competition: financial inclusion.1

Its importance across all countries debunks a misconception that financial inclusion is pro-bono and lacks sustainable business models. Instead, it is now an attractive proposition for banks and financial… Show more

Competition was the order of the day when the European Union opened the open banking floodgates with its revised Payment Services Directive (PSD2). The order still stands. But another impetus is now making its own waves on the back of the increased competition: financial inclusion.1

Its importance across all countries debunks a misconception that financial inclusion is pro-bono and lacks sustainable business models. Instead, it is now an attractive proposition for banks and financial technology (fintech) companies if they properly avail of the opportunities.

No longer an optional extension of open banking, different countries’ prioritizations of financial inclusion reflect relative levels of importance and the recency of formal proclamations on the topic.

Degrees of prioritization are associated with degrees of financial inclusion. Often used as a blanket term in reference to individuals or their small businesses, financial inclusion serves two audiences: unbanked people outside of the financial system, and underbanked people inadequately served by the financial system. For Mexico, the focus is on both; for the UK, the focus is largely on the underbanked. But there is no binary split. Regardless of banked status, the sharing of customer-permissioned data remains a core tenet of open banking everywhere in creating an inclusive financial system for all.

Mobile phones are often seen as a panacea for many of the challenges associated with financial inclusion. But access to financial services is not as simple as access to a mobile device, and a mobile phone with stored funds does not automatically equate with financial inclusion. Still, it makes for a very good start. Show less

This report is the third in a series of reports by the Open Banking Working Group of the MENA FinTech Association (MFTA). It follows Open banking: A vision from the Arab world in 2020 and Open finance: A framework for the Arab region is more than a question of scope in 2021. Embedded finance is now making that growth a reality in MENA.

Today’s embedded finance is no longer the exclusive preserve of traditional banks and established partners. Embedded finance now allows almost any… Show more

This report is the third in a series of reports by the Open Banking Working Group of the MENA FinTech Association (MFTA). It follows Open banking: A vision from the Arab world in 2020 and Open finance: A framework for the Arab region is more than a question of scope in 2021. Embedded finance is now making that growth a reality in MENA.

Today’s embedded finance is no longer the exclusive preserve of traditional banks and established partners. Embedded finance now allows almost any brand—big or small—that adopts APIs to become a fintech company. Show less

The MENA FinTech Association (MFTA) Open Banking Working Group, in collaboration with the Arab Regional FinTech Working Group, has today published a landmark report Open finance: A framework for the Arab region is more than a question of scope.

This report on open finance is a product of collaboration between the Open Banking Working Group of the MENA FinTech Association and the Arab Regional Fintech Working Group.

The report explains why open finance is a step change for the… Show more

The MENA FinTech Association (MFTA) Open Banking Working Group, in collaboration with the Arab Regional FinTech Working Group, has today published a landmark report Open finance: A framework for the Arab region is more than a question of scope.

This report on open finance is a product of collaboration between the Open Banking Working Group of the MENA FinTech Association and the Arab Regional Fintech Working Group.

The report explains why open finance is a step change for the finance sector, and why it offers unique opportunities for the Arab region but also brings challenges for both regulators and firms alike.

The report foresees the need for a change in the way firms think about and use data and it argues that open finance may require cultural shifts around the globe. That is because open finance, the report says, is not just about a bigger or broader version of open banking. It is a fundamentally new development. Show less

The Arab Monetary Fund (AMF) and the MENA Fintech Association (MFTA) have published a report on an “Open Banking Vision from the Arab World.” The Open Banking Working Group of the MFTA and the Arab Regional Fintech Working Group have collaborated to develop a vision on how open banking can serve the specific needs of the Arab economies based on use cases, business models, infrastructure, standards and frameworks.

In the UK, Open Banking and Instant Payments—in the form of the Faster Payments Service (FPS), the national real-time payments scheme launched in 2008—are now well-established features of the banking and payments landscape.

With both schemes having reached critical mass, they’ve become a powerful and mutually supporting combination for driving payments innovation and use cases. While the use of FPS has been growing for more than a decade, it saw a renewed surge following the launch of… Show more

In the UK, Open Banking and Instant Payments—in the form of the Faster Payments Service (FPS), the national real-time payments scheme launched in 2008—are now well-established features of the banking and payments landscape.

With both schemes having reached critical mass, they’ve become a powerful and mutually supporting combination for driving payments innovation and use cases. While the use of FPS has been growing for more than a decade, it saw a renewed surge following the launch of Open Banking in 2018.

The result? Open Banking and Instant Payments are growing together in the UK—with banks and non-bank players increasingly looking to offer solutions that bring their customers the best of both schemes. Show less

Corporates are preparing for Open Banking
Based on findings from our recent Open Banking for Businesses Survey, 77 percent of SMEs and large corporations already participate in Open Banking ecosystem platforms or plan to do so in 2019. They expect to partner with third-party providers (TPPs) mostly around payments, expense management and B2B services and more than two-thirds are interested in joining Open Banking ecosystem platforms with banks.
Likewise, more than 80 percent of banks… Show more

Corporates are preparing for Open Banking
Based on findings from our recent Open Banking for Businesses Survey, 77 percent of SMEs and large corporations already participate in Open Banking ecosystem platforms or plan to do so in 2019. They expect to partner with third-party providers (TPPs) mostly around payments, expense management and B2B services and more than two-thirds are interested in joining Open Banking ecosystem platforms with banks.
Likewise, more than 80 percent of banks already significantly invest in Open Banking use cases for SMEs and corporates or plan to do so. Nearly 90 percent are ready to build an ecosystem platform with third-party services for their commercial customers. It’s an opportunity for both banks and corporates to expand their ecosystems and extend their reach.

Gaps exist between banks and corporates
As aligned as corporates and banks are about the value of Open Banking for commercial business, there is a disparity between what corporates want and what banks plan to provide.
In our survey, for example, SMEs cited payments and cash management as the top two areas of their business that could be most improved in partnership with their bank. It indicates an opportunity for banks to help SMEs streamline and integrate their business and administrative processes—such as accounting, bookkeeping, payments, taxation and cash management. Yet, banks expect to enable banking as a platform (33 percent) and finance (15 percent) as Open Banking-related value-added services for their SME customers. Only 10 percent cited cash management and nine percent stated payments. Show less

Assessing the EBA’s final draft Regulatory Technical Standards—including the amendments made by the European Commission—and their effects on payments use cases and business models.

Die überarbeitete EU-ZahlungsdiensterichtlinieII (PSD2) wird den Weg für ein neues Zeitalter im europäischen Zahlungsverkehr ebnen. Zu den Kernzielen der PSD2 gehören der bessere Schutz der Verbraucher vor Betrug und die Klärung der Haftungsfrage im Zahlungsverkehrsökosystem.
Eine starke Kundenauthentifizierung ist neben einer sicheren Kommunikation der Schlüssel zum Ziel.

Erfahren Sie, welche Sicherheitsrisiken in Zeiten von PSD2 und Open Banking neben den weitreichenden innovativen… Show more

Die überarbeitete EU-ZahlungsdiensterichtlinieII (PSD2) wird den Weg für ein neues Zeitalter im europäischen Zahlungsverkehr ebnen. Zu den Kernzielen der PSD2 gehören der bessere Schutz der Verbraucher vor Betrug und die Klärung der Haftungsfrage im Zahlungsverkehrsökosystem.
Eine starke Kundenauthentifizierung ist neben einer sicheren Kommunikation der Schlüssel zum Ziel.

Erfahren Sie, welche Sicherheitsrisiken in Zeiten von PSD2 und Open Banking neben den weitreichenden innovativen Marktchancen für Banken mit sich bringen können. Banken müssen ihre wertvollen Kundendaten, Kundeneinlagen und Banksysteme vor Cyberangriffen absichern. Welche Maßnahmen können ergriffen werden? Wie sieht die Sicherheitsarchitektur im API-Zeitalter für Banken von Morgen aus? Lesen Sie mehr in unserem neuen Point of View. Show less

With implementation of the revised Payment Services Directive (PSD2), a new era of secure payments begins in the European Union. The new regulation offers enhanced customer protection against fraud, stringent liability and accountability norms, and strong customer authentication features.

PSD2 introduces electronic remote payment transactions based on dynamic linking and new types of payment services that allow customers’ accounts to be accessed via application programming interfaces… Show more

With implementation of the revised Payment Services Directive (PSD2), a new era of secure payments begins in the European Union. The new regulation offers enhanced customer protection against fraud, stringent liability and accountability norms, and strong customer authentication features.

PSD2 introduces electronic remote payment transactions based on dynamic linking and new types of payment services that allow customers’ accounts to be accessed via application programming interfaces (APIs).

The directive provides measures to protect the confidentiality and integrity of personalized security credentials. Banks will now be authorized to block third-party access to accounts if they detect unauthorized or fraudulent activity. At the same time, providers who fail to authenticate a transaction appropriately will now be held liable for any resulting breaches. Show less

This document outlines Accenture’s response to EBA’s open consultation on the draft Regulatory Technical Standards (“RTS”) specifying the requirements on strong customer authentication and common and secure communication under PSD2 published on 12 August 2016.
Accenture provides a range of consulting, technology and outsourcing services supporting technical infrastructure of payments and cards processes to various retailers, banks and payment processors. We are helping banks to build their… Show more

This document outlines Accenture’s response to EBA’s open consultation on the draft Regulatory Technical Standards (“RTS”) specifying the requirements on strong customer authentication and common and secure communication under PSD2 published on 12 August 2016.
Accenture provides a range of consulting, technology and outsourcing services supporting technical infrastructure of payments and cards processes to various retailers, banks and payment processors. We are helping banks to build their open banking capabilities and innovative business models. Through this work, we have experience of the trends and hot topics in the payments industry in Europe and globally, and their impact on organisations and consumers. Open banking, open APIs, e- and mCommerce including payments are one of these issues and, as such, we welcome the opportunity to answer the EBA Consultation Paper on future Regulatory Technical Standards on strong customer authentication and common and secure communication under PSD2. Show less