The article first appeared in AltFi
The recent announcement of the next awards to recipients in the Open Banking Challenge got me thinking about the number and nature of collaborations between fintechs and traditional banks that we’ve seen in the last year.
The Open Banking initiative, now many months since its launch, was proposed because the traditional banks, which dominate the retail and SME banking market, were not allowing for enough meaningful competition to either new entrants or to the clients they served in products and services, and the Challenger Banks were finding it challenging to access the market and embark on meaningful growth.
The UK’s Competition and Markets Authority believed that by creating software standards and industry guidelines it could drive both competition and innovation in the UK banking industry. By opening up data it would create another means to enable fintech challengers and improve retail products and services. What I think is true is that it will take some time before individuals and SMEs fully understand and feel the impact of the features and benefits of Open Banking, but how much, if any, impact has the open banking initiative had in driving forward fintech?
Read the full article via AltFi here