In this video Huw Davies, the co-founder of Ozone API and Head of ecosystem management at OBIE talks about the next steps for open banking adoption.
The Ozone API platform supports open banking standards in major markets around the world and is ready to enhance any bank’s existing technology, enabling immediate regulatory compliance and providing the tools for commercial growth.
It has been quite a privilege for Huw to see the ecosystem growth and development. Since covid-19 they have seen a huge surge in innovation, seeing a number of use cases coming to the fore in the wake of the crisis.
For example use cases have included charity donations. Charities are losing a huge amount of opportunity to raise funds with big events like marathons being cancelled.
In the context of Covid-19 the central banks are under a lot of pressure to focus on economic recovery, in such a situation open banking is a great success. This commercial market is driving the commercial market. In India there is a UPI model, that’s only 4 years old now but everyday there are over a billion transaction in a month. Another stage of this financial service will be like a commercial layer, which will unlock potential.
There are some key requirements to unlocking the potential of Open Banking, and while a lot of APIs have been delivered to meet those requirements, Huw thinks that as a commercial market to build on top of those APIs, as banks start to create more functionally rich APIs. In terms of the availability and the performance and the functionality of the bank APIs he thinks harmonization of standards is certainly a goal and driving that interoperability, knowing in the payments industry this is really critical.
Whatever Open Banking do must be consumable so they think they really need to work on their data payment. So, he thinks this is an opportunity for banks to deliver great APIs, with a common sort of consent model that can be used as a platform for, whether it’s payments, whether it’s onboarding into a loyalty scheme or whether it’s booking a flight, whatever it is, that potential to start combining some information.
These will not happen overnight but they need to accelerate their digital infrastructure to make this happen fast. This is a huge opportunity for not just the banks in the banking industry but every other business that can build on top of that and build great end customer propositions around that access.
These businesses are going to have to reduce costs significantly, they’re having to find more digital ways of dealing with new customers in order to accelerate the pace of open banking.
0:00 How Covid 19 boosted open banking?
2:50 What is the current state of open banking?
4:27 What are the next steps for unlocking the potential of open banking?
7:17 Post Pandemic what are the long-lasting changes for open banking payments?