Open Banking Pushes Interoperability to the Payments Forefront

Open banking, which relies on seamless connectivity between technology systems, is spurring a trend toward interoperability that should lead to a pro-competitive environment in product development and to more satisfying user journeys in financial services.

To make this work, however, technology providers must create partnerships with merchants and financial institutions to establish long-term, adaptable relationships, create product lines that address the needs of various clients, and work with third parties to develop the resources needed to solve for complex implementations. This cooperative environment will also head off regulator concerns about anti-competitive practices and data privacy abuses in the space. 

Key questions discussed in this report:

• How is interoperability fueling growth in alternative payments?
• How can a pro-competitive environment be fostered among providers of products and services?
• How can FIs, fintechs, and third-party providers work together to satisfy regulators’ concerns?
   

Companies Mentioned:

Amazon, Apple, Capital One, Financial Data Exchange, Finicity, Google, Mastercard, MX, Technologies, Plaid, Visa