Viva la Open Banking Revolution!

2018 has been the year of the Open Banking revolution, and it’s been hard to miss the press coverage. In summary, historically, banks have withheld banking data and information about income, transactions and spending. The recent change in law means that banks and building societies now must authorize regulated businesses, such as ‘Am I Paid?’ to access data following an explicit opt-in from the user.

The new rules are devised to promote the development and increased use of new online and mobile services via open banking, and make payment services across the world safer. The new rules also mean that legally, banks only have the right to block data access if it detects fraud or insufficient opt-in permission.

Data transfer and sharing is often enabled by an application programming interface (API), it is a set of clearly defined methods of communication between various software components. APIs have been leveraged in non-banking (an somewhat banking) settings for years, for example Facebook, Google Maps, LinkedIn, Twitter and Amazon all offer APIs to leverage their data and add allow developers to build functionality surrounding their services. Techcrunch, in 2016, reported that Salesforce generates 50% of its revenues through APIs, eBay up to 60%, and Expedia 90% – many business’ whole business model is based on API’s such as Twilio and Zapier to name but a few.

Open Banking has unlocked banking data, therefore creating a whole range of potential new business models and in which not only the banks can compete, where previously with their locked down infrastructure meant there was less incentive for them to innovate.

Payment Collection Services
Bill collection services and collection systems have been given the opportunity to flourish with Open Banking. With the new wave of AI based learning software, standard collection agency fees should reduce as work is automated.

Open Banking has also made it easier for businesses to sell unpaid invoices as transaction history can be verified without the need for potentially doctored copies of bank statements. There is a huge market for collection agency services where debt collections can be automated, reducing the need for manual labour and reducing potential for human error. A good example of this is within ‘Am I Paid?’ anyone can can automate collection letters, emails, SMS and automated phone calls to clients. Collection agency rates are typically 10 to 20%, by automating collections follow ups, it is possible to train clients to pay on-time, knowing that their service will be terminated quickly through non-payment.

Automation makes chasing outstanding invoices and past due invoices much easier as credit controllers and business owners can control the level of automation that suits them, for example whilst learning the system, all unpaid invoice debt collection communications can be approved before going to the client, once confident that the system is prompting as expected, debts and past due invoices can be set to be chased fully automatically.

With advanced collections services such as ‘Am I Paid?’ you can relax knowing that you will be notified if and when money due is paid to you, and additionally can often remove the need to hire a debt collector as the majority of the work is automated for you.

Open Banking increases the breadth of financial services accessible by permitting services other than your bank or building society primarily safely and securely to access your account data. Allowing you to decide which, if any services can access your account data and for how long.

The shift in people’s perception about allowing access to their bank account data is inevitably going to be a slow process, however as it becomes the norm, and people realise the benefits in allowing known reputable brands. Time will tell how quickly this happens. As expected, the first 3 months have been quiet given banks going live at different times, and all initial participants on limited testing basis.

The next phase of adoption is the interesting bit and there is much more to come, as per the Open Banking Roadmap. The UK’s November Budget statement committed to broadening the Open Banking standards to cover other products such as credit cards and e-wallets into 2018 and 19 and beyond that potentially including all financial products from pensions, to mortgages.

Leave a Reply

14 Comments on "Viva la Open Banking Revolution!"

avatar
  Subscribe  
newest oldest most voted
Notify of
Plastic wristbands
Guest
I’ve been browsing online more than three hours today, yyet Inever found anny intereesting article like yours. It’s pretty worth enough for me. In my opinion, if all webmasters and bloggers made good content as you did, the web will be a lot more usxeful thn ever before.| I couldn’t resist commenting. Very well written!| I willl immediately seize your rrss feed as I can’t find your email subscription hyperlink or e-newsletter service. Do you’ve any? Please let me realize so that I may just subscribe. Thanks.| It’s perfect time to make sime plans for the future and it’s time… Read more »
Betsey
Guest

Right awway I am going away to doo my breakfast, once having my breakast coming over again to read additional news.

www.linux.org
Guest

Singing worѕhip songs iѕ sweet but that?ѕ not the one approach tо worship.?
Daddy mentioned, perhaps to make Larrү ѕtop singing.
?There are lots of methods to worship.

silicone wristbands
Guest

Everything is very open with a very clear explanation of
the challenges. It was definitely informative.
Your website is useful. Thanks for sharing!

Oracle
Guest
habillage bois tableau ⅾe bord voiture,habillage de tableau ԁe bord,habillage ԁe tableau ɗe bord fiat ducato,habillage décoration ɗe tableau Ԁе bord,habillage inox tableau ԁe bord clio 4, habillage tableau ⅾе bord 106,habillage tableau ԁe bord 205,habillage tableau ԁe bord 206,habillage tableau de bord 207,habillage tableau ⅾе bord 2cv,habillage tableau dе bord 3008,habillage tableau Ԁе bord 306,habillage tableau ⅾe bord 307,habillage tableau ⅾe bord 308,habillage tableau ԁe bord 3m,habillage tableau ⅾe bord 406,habillage tableau ԁe bord 406 coupe,habillage tableau ɗe bord 407,habillage tableau dе bord 607,habillage tableau ⅾe bord alfa 159,habillage tableau ⅾе bord audi,habillage tableau ⅾe bord audi ɑ3,habillage tableau… Read more »
cheap custom wristbands
Guest

I have been exploring for a bit for any high-quality articles or blog posts in this sort of space .
Exploring in Yahoo I finally stumbled upon this site.
Reading this information So i’m happy to express that I have an incredibly good uncanny feeling I came upon exactly what I
needed. I so much unquestionably will make sure to don?t omit this website and give it a glance regularly.

personalized silicone wristbands
Guest

This site truly has all the info I wanted about this subject and didn?t know
who to ask. http://www.nullrefer.com/?https://www.promotiongifts.co.nz

personalised silicone wristbands
Guest

I like this site it’s a master piece! Glad I found this
on google.

cheap silicone wristbands
Guest

I wanted to develop a small note to be able to appreciate you for those pleasant guidelines you are showing
on this site. My prolonged internet investigation has now been compensated with reliable concept to share
with my friends. I would tell you that we website visitors actually are extremely endowed to be
in a wonderful site with so many marvellous individuals with very beneficial things.
I feel extremely blessed to have encountered the site and
look forward to plenty of more awesome moments reading
here. Thank you once again for all the details. http://www.nullrefer.com/?https://www.fone2.com

festival wristbands
Guest

Way cool! Some extremely valid points! I appreciate you writing this write-up and the rest of the website is extremely good.

cool wristbands
Guest

Thank you for the good writeup. It in fact was a amusement account it.
Look advanced to more added agreeable from you! By the way,
how can we communicate?

personalised silicone wristbands
Guest

Attractive element of content. I simply stumbled upon your site and in accession capital to
say that I get actually enjoyed account your weblog posts.

Anyway I will be subscribing to your feeds and
even I achievement you get right of entry to consistently fast.

make your own rubber bracelet
Guest

I really value your piece of work, Great post.

whore
Guest

Greetings! Very useful advice in this particular post! It is the little
changes that will make the most important changes. Thanks for sharing! http://www.nullrefer.com/?http://www.melbourneobserver.com.au/