2020 has been a challenging and difficult year for many organizations and entrepreneurs. For some this year has entailed great challenges for their development, while many also have seen new opportunities arise.
It is clear that this year’s pandemic has forced most of us – or rather encouraged us to think outside the box, accept new ways of doing things, embrace the rapid digitalization and be more cost efficient. A movement that has been going on for many years – but that now – thanks to technology has been accelerated in many industries, including the area of financial services that we are in.
The finance industry is now in the middle of a true revolution.
For many years it has been a traditional and conservative sector, largely controlled by the major banks, with little transparency and flexibility of options to access and use financial services. The movement towards openness and transparency in the industry can be summarised as open banking but just like other buzz words, open banking can have a different meaning depending on who the provider is.
In its simplest form, open banking can be explained by letting different players being able to open up and share financial information with each other in a secure way. But for open banking to be real we at Open Payments believe that it must be created with open, secure and real interfaces, so-called APIs and not by downloading data in an insecure and sometimes unauthorized manner
(such as for example through screen scraping and reverse engineering).
One of the cornerstones of open banking was the implementation of the EU’s second payment services directive PSD2 that took place in 2019.
The main purpose of PSD2 is to strengthen consumers’ and users’ protection and at the same time create innovation and creativity.
At Open Payments we value quality and security above anything else and we are therefore proud to have been able to launch our secure and qualitative platform with support for both Account information and Payment initiation for both corporate accounts and private accounts during 2020.
Our core PSD2 platform is today for example being used by companies that want to improve its risk assessment through accessing the loan takers’ account information, initiating payments in a check out or improving their accounting services by accessing companies’ transaction history and details.
When we head into 2021 we expect open banking to flourish even more and at a pace faster than before and we will release some great features and products during the first half of 2021, taking open banking to the next level.
At Open Payments we believe in collaborations, partnerships and to work closely with our customers in order to create and release the best suitable products and features. That is very exciting as we can create products and services as we go along based on our customers’ current and future needs. The possibilities with our platform are endless.
2020 has been a tough year in many ways, but it has also been a year of progress, reflection and planning for a brighter future. And as a FinTech, we project the emergence and execution of many bright ideas and innovative products in 2021. We look forward to being a part of that.
Happy New Year! Happy New Possibilities!
Louise Brandt, CEO & Co-founder, Open Payments Europe