12/30/2023 0 Comments Finkit for open banking![]() “Though PSD2 and Open Banking are chiefly viewed as regulatory requirements, they represent a significant opportunity for banks to partner with trusted third-party providers to integrate financial services into their customers’ everyday lives, while also driving more innovation inside the banks,” said Ken Paterson, vice president, Special Projects, Mercator. “As a result of these regulations consumers will be able to access financial information and initiate certain transactions previously only available through financial institutions through other parties they trust and interact with regularly.”įiserv said FinKit for Open Banking is designed to enable immediate and long-term compliance with these regulations and put in place the capabilities required for banks to maximize the opportunity of open banking. “The move toward open banking, driven by the European Union’s Second Payment Services Directive (PSD2) and the United Kingdom’s Open Banking Implementation Entity (OBIE), will transform financial services,” said Fiserv. Despite the criticism expressed at the outset, SIX finds that self-regulation is currently working well, especially with regard to the implementation of possible new use cases for APIs.BROOKFIELD, Wis.–Fiserv announced it has launched FinKit for Open Banking to help financial institutions meet and keep pace with rapidly unfolding regulations. An example of this is “Open Wealth” – an industry initiative for standardized interfaces in asset management launched by St. Galler Kantonalbank in collaboration with the consulting company Synpulse. Within only 9 months of defining the standards, the interfaces could already be implemented at St. Galler Kantonalbank through the bLink platform of SIX. Customer reaps the benefit of choice: Most banks offer similar services that are limited in scope. This way, Switzerland is already ahead of the regulated EU still focusing on interfaces within the payment sector. More importantly, most banks aren’t really good financial advisors. With Open Banking, customers can reap the benefit of choice as they have multiple options, or service providers to choose from. Zürcher Kantonalbank has also gone live with the offering recently. Moreover, the three portfolio management systems Assetmax, Alphasys and Etops have connected to the APIs through bLink on the side of third-party providers. Organized as an association, the OpenWealth initiative is continuously gaining more banks and FinTech companies as members and is striving to internationalize the standard. OpenWealth holds enormous potential for innovation and gives the Swiss financial center the opportunity to further expand its leading global position in asset management. There are also similar initiatives for mortgages and pensions schemes already in development. In recent months, there has been an increasing amount of talk in the media about new offers for embedded finance or banking-as-a-service. Both terms mean the next expansion step of open banking. ![]() Embedded finance describes the integration of a financial service into a non-financial offering. For example, it allows banks to integrate the offering and applications for loans directly into a company’s accounting solution.īanking as a service takes it to the next level. In other words, financial services are also offered by companies operating in other industries. To meet the regulatory requirements, they often engage an infrastructure provider with a banking license in the background. This is why we can see the German real estate agency Engel & Völkers now providing its customers with a bank account and a respective card via an app. ![]() By doing so, this company competes with established banks. Cards and accounts are probably just the beginning, with other integrated offerings such as mortgages to follow. On this basis, FinTechs or large tech companies have been entering the market with competitive financial products for quite some time already, also in Switzerland. It can generally be said that Banking as a Service lowers the barrier to entry for new providers to offer their own financial products, as they do not need a banking license or a core banking system. ![]()
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