All tagged Financial Services
The Competition and Markets Authority decided to use Open Banking as the vehicle to drive competition in retail banking. The CMA was mandated to establish the Open Banking Working Group (OBWG) to deliver an open standard for Application Programming Interfaces in UK banking.
With the following objectives; to aid customers in controlling their data and create an environment where financial technology companies (FinTech’s) or businesses make use of bank data on behalf of customers in innovative ways.
The Open Banking industry is expected to generate £7.2bn in revenue by 2022, 71% of SME’s and 64% of retail consumers are forecasted to adopt it over the same period according to Accenture.
Open Banking in the UK and the Payment Services Directive 2 (PSD2) enacted by the European Union (EU). Are government regulations that compels banks to open their historical and current customer data to 3rd parties.
Presently, 30% of the world’s adult population is unbanked, 80% of SME’s worldwide have no access to formal financial systems and 90% of the adult population in developing countries do not have access to a credit card. The International Finance Corporation (IFC) reported a funding gap of more than US$ 2 trillion for (SME’s) in emerging markets. Hence the World Bank and the G20 are collaborating to solve this challenge.