Open Banking has potential to be one of the most liberating financial services regulations for small businesses by targeting a long-established barrier to competition between big banks and recent market entrants. On the eve of PSD2’s introduction, Felicia Meyerowitz Singh, Co-founder and CEO of emerging fintech business Akoni Hub, says:
“Open Banking paves the way for data sharing between banks and smart platform providers, enabling new financial products and services that promise to save businesses both money and time. Coupled with the growing trend toward Open APIs across a variety of public and private data platforms, Open Banking can enable those enterprises without skilled finance or treasury resources to benefit from a range of innovative and simple to use business platforms.
“The major risk to Open Banking delivery, however, is a lack of trust in the system. If banks can create an environment that fosters credibility and confidence by collaborating with innovative platform providers, such as Akoni Hub, Open Banking will deliver significantly more benefits to small businesses and enterprises.”