OPEN BANKING

Open banking is set to increase competition and lower the costs for citizens and enterprises – what  great news to hear!

It is estimated that people who exceed their permitted overdraft for a week or two will save, on average £180 with these new changes.

The British regulator for market competition, CMA, has adopted a package of measures which with the help of technology should increase competition in banking sector and lower the costs for citizens and enterprises though better insight into accounts and data sharing with multiple service providers.

Older and larger banks don`t have compete with each other to attract clients, and smaller and newer ones have difficulties in finding a way to expand their business. This means many people are paying more than they should, but have no benefits from new services, the CMA states.

4 large British banks control 77% of the market of bank accounts and more than 80% of the accounts of small enterprises.

With that in mind regulators seek to speed up the technological innovations requesting that banks adopt the so called “open banking” system. This system will enable citizens and small enterprises to safely submit their data through smartphone apps to other banks besides their mother bank, so they could more successfully manage their accounts with multiple banks and compare their prices.

Additionally the CMA wants to facilitate transferring accounts, which now only 3% of citizens and 4% on enterprises do. Regulators estimate this will cause savings of around £92 for citizens and £80 for enterprises annually.

Some specific measures have already been taken in form of support to citizens and enterprises which exceed their limits ad-hoc where Banks earn on such fees approx £1.2 billion annually, but from now they will have to warn their clients of exceeding limitations and send them notifications to avoid costs.

Will these measures from regulators result in more savings? It remains to be seen. There is already some criticisms that regulators have not considered seriously the industry structure, and that they are relying solely on new technology to encourage competition instead of planning themselves.

 

Events we are attending in 2018

Where has 2018 gone? In the final quarter we look forward to some fresh knowledge and updates in finance technologies. FinTech is getting more developed each year and as new technologies pop up, we are well positioned to be ahead of the game.

Check out the events we will be attending in September, October and November.

FinTech.li – “FINANCE MEETS FUTURE”, Liechtenstein, September 26, 2018.

Conference for finance and technology, it is the new format of FinTech.li cooperation with inventx AG. We can expect an innovative day with international audience and trends offering:

  • networking in a personal and familiar atmosphere with decision makers
  • a careful selection of speakers and personalities
  • no advertisements but knowledge at the forefront
  • 20-minutes-only-speeches, with practical experiences and no adverts

PayExpo Europe 2018. Set for October 9 – 10, 2018 at Business Design Centre in London. PayExpo is one of the best places to share knowledge and rub shoulders with the disruptors and innovators driving change in payments. Being one of the largest payment events in UK it is a great place to update yourself in matters of fast, easier and more secure payments. PayExpo is offering to:

  • free entry for MNO`s, banks and merchants
  • projection of payment market for the next 10 years
  • over 2000 senior decision makers

Lendlt Fintech Europe 2018 – November 19-10, Business Design Centre, London. LendIt Fintech Europe is the continent’s leading event for Innovation in Financial Services. This year’s event will attract 1,200+ fintechs, banks and investors from Europe’s most influential companies to learn, network and do business. Hot topics will include: lending innovation, financial inclusion, digital banking, blockchain and AI. One of the best industry events to attend if one is to understand the key drivers that push the market.