Money20/20’s annual Europe event commenced with a session focused on the advancements in open banking.
The first session, titled “From Concept To Reality: Five Years Of Open Banking,” was moderated by Helen Child, founder and CEO of Open Banking Excellence (OBE). She was joined by Nick Corrigan, European president of Global Payments; Tom Pope, SVP of payments and platforms at Tink; and Jim Wadsworth, EVP of strategic market development at Konsentus.
During the discussion, Corrigan emphasized the importance of taking a step back to consider the core principles of open banking, which he identified as “financial inclusion, financial well-being, and the integration of technology in the financial services sector.” He acknowledged that while significant progress has been made, it’s essential to remember that the industry is still in its early stages, with two of the past five years impacted by the pandemic. “We’ve got the building blocks in place,” he stated, highlighting both account and payment components.
Pope expressed his frustration with the term “open banking,” asserting that it oversimplifies the complexities of the industry. He advocated for focusing on the specific challenges within individual markets that open banking can address, whether related to data or payments, and emphasized the potential of integrating both to create innovative solutions.
Wadsworth noted that while open banking in Europe has started strong, referencing PSD2 as a positive step, he cautioned that much work remains to be done. The panelists recognized the UK as a global benchmark for open banking initiatives, although they acknowledged that other countries are making notable advancements as well. Wadsworth cited Poland as an exemplary model, highlighting its effective integration of existing payment infrastructures with innovations such as point-of-sale systems and QR codes to enhance e-commerce.
Corrigan pointed out that, in some respects, both the UK and Europe may have been outpaced by other regions in terms of regulatory ambition. He concluded the discussion by remarking that the ultimate goal of open banking remains unclear and that the journey is just beginning.