Open Banking APIs do currently neither support new payment methods like Wallets, nor legacy systems like EMV. The net effect is that from a bank perspective, 𝐎𝐩𝐞𝐧 𝐁𝐚𝐧𝐤𝐢𝐧𝐠 𝐝𝐨𝐞𝐬 𝐧𝐨𝐭 𝐫𝐞𝐩𝐫𝐞𝐬𝐞𝐧𝐭 𝐜𝐨𝐫𝐞 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬. Without going into technology I think it would be great to start a "conversation" of were we want to be in 5-10 years from now. Although the picture mentions the UK, the situation is probably pretty much the same everywhere. From my somewhat technical horizon, it is obvious that the Open Banking architecture is in need of an upgrade: https://lnkd.in/dTVHPkKP Image: ©Tina Nizova #payments
Open Banking is a digital channel like Web, mobile now API. Its not designed to be anything like EMV. In fact EMV is just a spec that provides another secure channel for payments (card/PAN payments) Like Open Banking is a spec. I should know I helped build EMV and Open Banking for many banks worldwide I'm really old 😐
So true. Banks do Open Banking because they HAVE to, not because they WANT to...
Problem is that this is not primarily a technical discussion, but one about markets as such. If we allow a cartel architecture to reduce consumers to products through enforcing payments as ever-tracking cookies, markets will suffer nomatter what we do. Problem is that the consumer/market/society voice is ignored in a space full of interests.
From a (app dev) consumer point of view, n years from now, I want: 1) All banks to choose to voluntary provide high-quality APIs. They should do this not because they have to but because it makes good all round business sense. 2) All core functions / features / API to be standardised (UK #openbanking style) but not necessarily mandated/enforced by a central entity (such as OBIE). It should be a industry ‘no-brainier’ to build on open standards. 3) Individual companies to lead by example and create new standards where they don’t exist eg ‘create wallet’ as you mention. 4) The standards evolve over time to support new requirements but the industry continues to work together to maintain standardisation as a fundamental core principle.
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