Roopak Haridasan’s Post

Insights from Today's Open Banking Summit: Key Takeaways and Highlights #FDX #openbanking 1. Open Banking Rule in the US: Rohit Chopra, Director of the Consumer Financial Protection Bureau (CFPB), discussed the forthcoming rule for Open Banking in the US at the FDX Global Summit. The rule is expected to be finalized by summer/fall, emphasizing the need for balance to avoid stifling innovation while ensuring consumer protection. 2. Standards and Governance: Chopra highlighted the importance of setting standards that prioritize consumer interests over the agenda of specific industry participants. The CFPB plans to guide and certify industry-based standard setters, focusing on governance mechanisms to ensure credibility and impartiality. 3. Potential Challenges: Concerns were raised about the possibility of multiple standard setters and standards, potentially hindering interoperability. This scenario could resemble the current fragmentation seen in instant payments, where different systems based on the same standard do not communicate effectively. 4. Future Considerations: The CFPB is already considering potential issues that may arise after regulation, such as the impact of open banking on liquidity requirements and the role of "open payments" in driving adoption. Core providers are identified as crucial change agents, particularly for smaller financial institutions. 5. Implementation and Adoption: Once the rule is established, banks and financial institutions will face pressure to implement the new API standards promptly. Those who have delayed their preparations will need to accelerate their efforts to comply with the regulatory requirements.