10/29/2020 | News release | Distributed by Public on 10/28/2020 17:34
The world of banking is finally waking up to this potential of open innovation in order to help solve some of the biggest challenges-making services available to unbanked customers or underserved small and medium-sized enterprise (SME) customers. By seamlessly embedding banking services into our lives, it will improve the overall consumption of financial products and services. By the end of the decade, it is foreseeable that we may have as many services enabled by our banks as we have apps on our mobile phone.
The revolution to make this happen has just begun, with the Payment Services Directive (PSD2) regulation established in 2018. PSD2 empowers consumers with the ability to access their own data. It will also allow a plethora of new fintech players to leverage the core banking platforms of established banks in order to bring innovative services to everyone. Banks on the other hand, can work with the agility and creativity of start-ups to address niche opportunities across the varied segments of the market. We are at Day One of this open banking revolution, and this revolution has the potential to transform and impact our society on a broad scale.
Admittedly, the promise of open banking is not without associated fears and concerns. It needs to be enabled in a safe and compliant manner. At F5, we have had the privilege to be a part of multiple discussions with our customers, users and partners on the opportunities of open banking. In order to move our discussions forward, we partnered with research firm Twimbit to bring together a global open banking study to assess the progress of this initiative in the regions and markets around the world.
We benchmarked the global countries against two criteria-regulatory initiatives and market initiatives. Regulatory initiatives attempt to capture the efforts made by the various regulators by providing clear timelines and goals for embracing open banking. Market initiatives review the progress made by the companies and the ecosystem in each country.