Nick Cabrera’s Post

It's here! The new Cambridge programme on #openbanking and #openfinance is launching this month. Regulators and policymakers, don't miss this opportunity to build your knowledge on the hottest new topic in financial inclusion policy. This eight-week online programme brings together leading international practitioners to share their diverse experiences. The programme breaks down open banking and open finance fundamentals and explains the continuum leading to an open data ecosystem, so participants understand the potential of open banking in the broader context of an increasingly digital economy. The aim is to demystify the concepts and terminology, explain open banking as a regulatory approach and technical solution, and present the key considerations for implementing open banking. The programme has 7 modules: Foundations of Open Banking & Open Finance, The Global Market Landscape of Open Banking & Finance, Policy Objectives & Regulatory Considerations,  Technical Design & Infrastructure Development, Implementation Strategy & Ecosystem Development, Governance & Supervision and Open Data & Digital Market Infrastructure. What sets this program apart is its interactive and practical approach, empowering participants to engage in meaningful discussions and apply their insights to the specific requirements of their jurisdictions. The website link can be found here: https://lnkd.in/eyRn9RbN and the registration form here: https://lnkd.in/er9Airu2

In the rapidly evolving world of finance, new terminologies, technologies, and methodologies emerge at a staggering pace. The wave of digital transformation has led to the development of entirely new concepts within the financial industry, including Open Banking (OB) & Open Finance (OF), Embedded Finance (EmFi), and Banking as a Service (BaaS). Understanding these concepts is paramount for professionals navigating this dynamic landscape. Open Banking is a banking practice that provides third-party financial service providers with access to consumer banking, transaction, and other financial data from banks and non-bank financial institutions through the use of application programming interfaces (APIs). It aims to foster a collaborative environment where banking data can be shared securely to provide better services to customers. Going a step beyond Open Banking is Open Finance. While Open Banking typically revolves around transactional and account data, Open Finance extends this concept to include broader financial data such as pensions, insurance, investments, and more. The goal of Open Finance is to provide a holistic view of an individual’s entire financial footprint, making it easier for consumers to manage and understand their financial lives. Embedded Finance, on the other hand, refers to the 'deep and invisible' embedding of financial services within non-financial platforms. This seamless integration allows businesses from various sectors to offer financial products or services directly within their platforms, thus providing a more streamlined and holistic user experience. Banking as a Service (BaaS) is a potential business model for banks to monetise the regulatory shift associated with open banking and open finance and a key enabler to make embedded finance a reality. This model enables banks to connect with fintechs and other third parties directly via APIs, allowing them to build a wide range of customised and relevant banking offerings (products and services) on top of the providers' regulated infrastructure. This glossary serves as a comprehensive resource to illuminate the vast array of terms and concepts prevalent within the three concepts. By understanding and internalizing these terms, professionals can enhance their fluency in discussions, deepen their knowledge base, and optimize decision-making processes. Moreover, this lexicon aims to bridge any gaps of understanding, fostering more transparent communication between stakeholders, and paving the way for more collaborative initiatives in the industry. Hope you all find it useful Mohammad Nikkar, PhD Alexander Katzenschläger Arif Raza Vaanathi Mohanakrishnan Khaled M. Albasias Mr. Couchonomics Couchonomics with Arjun #openbanking #openfinance #embeddedfinance #bankingasaservice #baas

Regulating Open Banking With over 100 countries either implementing or planning an Open Banking framework, the movement is encouraging data-sharing in the global financial services industry. - Open Banking promises a wide range of benefits, from financial inclusion to financial education in the community. - It drives competition, reduces costs and paves the way for rapid financial innovation, which is why various official bodies across the globe have chosen to implement this framework. - But establishing frameworks that ensure steady innovation, increased competition, equilibrium and consumer protection is nothing short of a Herculean task. In particular, a fast-paced market often leaves regulators behind the innovation curve. In order to propose, design, enforce and review their regulatory framework to the highest standards, official bodies need to take a number of factors into consideration. So, what are the main obstacles that delay the arrival of widespread Open Banking regulation? 1. Data Privacy and Data Rights 2. Balancing innovation with security 3. Consumer Education & Trust 4. Fast-changing landscape 5. The Big Techs - Their business models may require competition and data privacy regulations,  6. Quality FinTech Governance , Banking As Service Platforms Source - https://lnkd.in/d24tRxEK

🚀 **2024: A Pivotal Year for Open Banking, FinTech, and the API Industry in Europe!** The financial landscape is set for transformative changes in 2024, with new EU regulations on the horizon that will reshape the broader open banking, open finance, and embedded finance ecosystems. Key areas to watch: 🔹 **Instant Payments Regulations**: Get ready for real-time transaction requirements. 🔹 **Electronic Identity (eID) and Digital Wallets Regulation**: Digital identity and wallets are becoming standardized. For any organization involved in open banking across Europe, this year will demand significant preparations to meet the regulatory mandates. Even stakeholders in regions like the UK, Australia, and Brazil should keep an eye on these developments, as similar agendas are emerging globally. Key Takeaways: 1. **Verification of Payee Requirements**: Essential for instant payments compliance, with global implications. 2. **Influence of EU Regulations**: Similar to GDPR and PSD2, these regulations could set global standards. Global providers operating in Europe will also be impacted, albeit with extended implementation deadlines. Stay ahead of the curve by aligning your strategies and operations with these upcoming regulatory changes. The future of finance is digital, instant, and identity-secure. 🌐💳📱 More Contents: Woongsik Dr. Su, MBA

As the financial landscape continues to evolve, and these new emerging concepts gain momentum, they are reshaping the way we interact with financial services. The lines between tech and financial institutions are merging leading to an era of collaboration and innovation! Well articulated as usual by Arjun Vir Singh 🙌🏼

🏦 From Open Banking to Open Finance: The top 10 Lessons for Seamless Transition 📝 As the financial industry evolves from Open Banking to Open Finance, the journey is fraught with technological, regulatory, and strategic challenges. However, this transition offers unprecedented opportunities for innovation and growth. Drawing from my experience with Nordea Open Banking, here are ten invaluable lessons that can illuminate the path to successful Open Finance implementation. 1. Embrace the Technological Shift  Open Finance ushers in a technological revolution, moving from batch processing to real-time data access. This leap forward enables the creation of innovative products and solutions, transforming how we think about financial services. Imagine offering products that leverage real-time financial data, enhancing customer experiences and operational efficiency. 2. Define Your Scope with Precision  Setting clear objectives is crucial. Begin by outlining your commercial goals and regulatory requirements under the Financial Data Act (FiDA). Integrating these aspects from the start ensures that your strategy remains flexible and robust against evolving regulations, preventing the need for a complete overhaul down the line. 3. Learn from the Pioneers  Inspiration for Open Finance can be found beyond the banking sector. Initially, we looked towards tech giants like Oracle and Microsoft. Today, innovators like Nordea, BBVA, and Deutsche Bank provide valuable blueprints for API marketplaces. Examining their successes and approaches can offer insights into creating a competitive Open Finance ecosystem. Read the full article by Sara Häger here 👉 https://lnkd.in/dwdTKQN2 Sarah Häger Enable Banking Fadi Pola Joonas Tomperi Fedor Tyurin Ugnė Palijanskaitė ✨ Ditte Gerner Dyhr Stian Faber Carsten Christensen Damián Džamba Chris Crespo #openfinance #openbanking #futureofbanking

Emerging Open Finance Regulatory Frameworks by Country 💡 2024 is shaping up to be a signature year for all stakeholders in the broader Open Banking, Open Finance and Embedded Finance ecosystems. In Europe, three key regulations — a regulatory triumvirate — have been proposed and have clear implementation dates set with regulatory requirements for all stakeholders: ⏱ Instant payments regulations (Instant Credit Transfers in Euro) 📱 Electronic Identity (eID) and digital wallets regulation (European Digital Identity Framework) 🚀 Next evolution of the core Open Banking regulation (the Third Payments Services Directive) For any Open Banking related organisation operating in Europe, 2024 will involve a significant work program to prepare for the new regulatory requirements coming in. Stakeholders operating in other jurisdictions including UK, Australia, and Brazil should be watching closely, as those countries also have similar agenda in relation to digital identity and instant payments. In addition, specific regulatory components (such as the verification of payee requirements under instant payments regulation) have the potential to influence global approaches in a similar way to how the introduction of the General Data Protection (GDPR) regulation and Second Payments Services Directive (PSD2) influenced the global regulatory environment. European regulations will also impact global providers operating in Europe, although implementation deadlines are stretched somewhat for these players. The three regulations working together also represent a fundamental shift from Open Banking towards Open Finance. While many countries bundle Open Banking and Open Finance regulations into their Open Banking approaches, 43 countries are creating specific legislative instruments and regulations to address Open Finance. These regulations define stakeholder roles and responsibilities, define data sharing responsibilities, and create new roles such as aggregators 🌍 Brazil, India and South Korea already have Open Finance regulations in place while other countries are investigating or progressing with activities. Source: Platformable - https://bit.ly/3WnZEaj #Innovation #Fintech #Banking #OpenBanking #OpenFinance #EmbeddedFinance #API #FinancialServices #Payments #eID #Data #Regulations

"Globally, every country is at a different stage of open finance adoption and maturity. But it drives a worldwide sentiment of growth opportunities and readiness towards change. For example- USA is set to launch their own open banking regulation-CPFB, which will bring a major shift in their open finance environment." F5's 2023 report reveals global optimism and growth of open banking and discusses the various stage of progression for various jurisdictions. This summary of the report covers: ✅ Open Banking's evident impacts on macroeconomic growth. ✅ Estimation of growth, and future trends of Open Banking. ✅ Global progress with open banking, and leaders within this ecosystem.  ✅ Positive developments in Baas, Embedded Finance and Data Modernisation, enabled by Open Banking. ✅ Imperatives for successful Open Banking. If you wish to view the official report, you can find it here:  https://lnkd.in/ggdmehE3

As the open banking and open finance market has started to mature, there has been a level of consolidation around key questions as part of any national programme. There are now over 65 open banking or open finance programmes either live or in-development globally. The industry has come a long way since 2014, when the early-stage discussions of implementing open banking in Europe really began. As the market has started to mature, there has been a level of consolidation around key questions that must be asked as part of any open banking national programme. Here at Konsentus, we have helped many national markets dive into these questions and navigate answers that work for their local market. ✅ Regulation To regulate or not to regulate? This is a common first question that authorities often ask themselves when embarking on an open banking or open finance journey. The assumption that regulation can be constructed slowly and purposefully and remain unchanged for many years does not work in today’s fast-paced world. Therefore, it is easy to see why regulators are perhaps slow to react to emerging trends and would rather the industry self-regulate. This, combined with the fact that national regulations are often fragmented with various responsible agencies exercising overlapping authority, makes for a difficult job for regulators. The regulatory environment for open ecosystems has many different flavours: 1️⃣No formal regulation but strong guidance from the regulator on technology and governance e.g., Singapore 2️⃣No formal regulation but regulatory deployed technology and governance arrangements e.g., South Korea 3️⃣No formal regulation and market-led governance and technology e.g., Switzerland 4️⃣Regulation but market-led governance and technology e.g., the EU 5️⃣Regulation followed by strong guidance and/or mandatory requirements from the regulator on technology and governance e.g., the UK 6️⃣Regulation and regulatory deployed technology and governance arrangements e.g. Brazil has a lightweight version of this. Although there are indications that some markets will have much broader regulatory deployed technology. ✅Governance Who to govern and by whom? Governance is often considered the least exciting issue in national open ecosystem development, but it is arguably the most important. Defining the operating model and governance structure is crucial for long term success. 👇👇👇 https://lnkd.in/ead_3W_2

In our #datagovernance model, one of the steps we encourage is to think through your theory of change or operational framework and map out how your activities generate value in the open ecosystem you operate in. By doing this, you can identify what data needs to be collected to measure your work, to identify gaps and opportunities, to see which partnerships could be built on, and to ensure you are creating the impacts that match your mission statement and organisational goals. In open banking/open finance, we think all regulators should be doing this to measure whether their country's open banking regulations are meeting the goals outlined in the regulation goals (usually these are about increasing consumer choice, ensuring consumer financial literacy and financial inclusion, improving security and data privacy, and so on). UK is one of the most advanced in applying this type of thinking, they have outlined an evaluation framework that guides their three month reporting. While this is commendable, we would say that at the moment they use surveys as a means to collect this data,. which is expensive and has several bias issues in reaching specific consumers, for example. We would suggest that there is a ton of data that can be collected from other stakeholders and from automating elements of the open banking ecosystem which would show demonstrated and felt needs, but this would also require mandating specific players to share their data at an aggregate level. We are considering responding to the current UK OBIE future entity recommendations report to suggest that this data collection should be a part of the contribution made by ecosystem stakeholders (alongside financial contributions). If you are working in open banking in the UK and want to contribute to our response or would like access to our data so you can frame your own response, please get in touch. The consultation is open until 20 May 2024: https://lnkd.in/eS4Sx_GQ