Open Banking in the UK, which went live in January 2018, requires the nine largest UK banks to publish open APIs, enabling regulated third party providers to access bank accounts securely and with account holder consent, via open APIs. The directory is part of a wider shift in the global banking landscape from batch processing to real-time, hyper connected banking – an era of real-time payments and collections, and banking systems becoming accessible through APIs.
Two recent developments show how open banking is now really starting to deliver its potential:
- Citi first to register for Open Banking in UK
- Bankable partners with Starling Bank and other payment provider to deliver new payment services.
Citi registers to being piloting new banking services
Citi today announced that is has successfully enrolled as a Payment Initiation Service Provider (PISP) on the UK Open Banking Directory, becoming the first corporate bank to do so. Inclusion in the directory will allow Citi to begin piloting new payment and collection services for clients.
Ireti Samuel-Ogbu, EMEA head payments and receivables, Treasury and Trade Solutions, Citi commented: “We see Open Banking as a significant development in the banking landscape in Europe and increasingly in other regions as regulators seek to drive competition and innovation in financial services. Open Banking in the UK is particularly attractive to us and our clients as it enables collections with open APIs standardized and live across the Competition and Markets Authority nine banks. Citi continues to work with the UK Open Banking Implementation Entity (OBIE) and regulators around the globe to drive positive development in open banking and to deliver payment system innovations that work for both consumer and business users.”
Not surprisingly, Open Banking Implementation Entity, the company set up by the CMA in 2016 to deliver Open Banking, welcomed Citi with Imran Gulamhuseinwala, Trustee of the Open Banking Implementation Entity commenting: “We are delighted to have Citi enrolled in our UK Open Banking Directory and are excited by their vision to leverage open banking to create new payment services for the UK market. As a leading global bank, Citi’s engagement is a strong endorsement of the UK Open Banking initiative and we look forward to further collaboration to develop the open banking ecosystem.”
Bankable partnering with Starling Bank and Transact Payments
Partnering requires putting together the right combination of partners to deliver attractive innovative services. It is difficult and requires tweaking as the market develops, e.g. Starling Bank recently dropped third-party payment provider Transferwise because, as Starling's Anne Boden told TechCrunch: “We figured that we could provide a better user experience by doing it ourselves." Yet Starling Bank has not stopped partnering, they have just announced a partnership with payment companies Bankable and Transact Payments Ltd.
Bankable initiated the partnership with Starling Bank and Transact Payments Ltd to be able to deliver a unique, real time full service payments platform to its clients, through only one contract.
Bankable, PCI-DSS Level 1 service provider and ISO 27001 certified, provides the technology platform and a full-service infrastructure, which makes access to the payments instruments possible. Bankable offers a suite of tools to deliver sophisticated white label solutions and a state of the art API, allowing clients to harness the full power of payment accounts, fully integrated to their existing software. Starling Bank provides access to the Faster Payment Scheme, BACS and Settlement services. Through Transact Payments Ltd, Bankable leverages their Electronic Money Institution licence to support the regulated aspects of financial services and support for the debit products.
This three-way partnership allows Bankable to offer more nuanced and homogenised services to their clients. Bankable are now able to provide indirect access to the wider banking network in United Kingdom, though provisioning of dedicated or multi tenanted banking accounts.
Eric Mouilleron, CEO and Founder of Bankable, said, “We’re proud to have two great partners in Starling Bank and Transact Payments Ltd that allows Bankable to offer a real time full service payments platform to our clients. This is a true partnership that is beneficial to all partners and it puts us in an even better position to increase our market share and continue our growth journey.”
Using this type of partnership Bankable have been able to put together a collection service for one of the world’s largest insurance companies to automatically collect AND reconcile payments from 000s of their brokers world-wide.
Open Banking is not restricted to just Europe, it is being rolled out, in various forms, in many countries. Bankable see many more opportunities like this opening up globally as they build their partnerships and coverage world-wide.
CTMfile take: For multi-national corporations, this is what Open Banking is really about. It will enable the new payment companies, such as Bankable or Citi, to put together new solutions made up of completely new combinations of systems and processes. You ain’t seen nothing yet.
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