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Summary: This podcast episode features Stefan van Colker, a Business Development Manager in the payments team at Sync. He discusses the current state of open banking in the UK and Europe, highlighting the success of partnerships in the payment space. Stefan also talks about the benefits of open banking, including customer choice, cost competitiveness, and the ability to access and utilize richer data streams. He explains how open banking can help address the cost of living crisis by providing tools for affordability checks and flexible bill payments. Stefan also mentions the potential for open banking to prevent fraud and improve customer protection.
Key Points:
- Open banking is gaining traction in the payments space, with many merchants and e-commerce platforms adopting open banking payments.
- Certain industries, like telecommunications, utilities, and water suppliers, are showing increased interest in open banking due to customer demand for more control over bill payments.
- Open banking provides an inclusive payment method and can compete with other payment methods, particularly for high-value purchases.
- The combination of payment data and customer financial data can help with affordability checks, payment plan setups, and overall financial well-being.
- Open banking can help prevent fraud by programmatically validating account ownership and authenticating every payment initiation.
- The UK remains a leading market in open banking, but other regions, such as Benelux and Scandinavia, are catching up.
- Recurring payments and commercial variable payments are potential areas where the UK can stand out in open banking.
- In the future, accessing data pools beyond financial data, such as loyalty points, could provide additional value and opportunities.
Key Statistics:
- About 51% of surveyed customers want more control over how and when they pay their bills.
- 70% of customers would consider switching providers if they could change the dates of their bill payments.
Key Takeaways:
- Open banking is gaining momentum in the payments space, and partnerships are driving its adoption.
- The inclusive nature of open banking and the ability to access richer data streams make it appealing to customers and businesses.
- Open banking can improve customer experiences, prevent fraud, and help with affordability checks and flexible bill payments.
- The UK remains a leading market in open banking, but other regions are catching up.
- Recurring payments and commercial variable payments are potential areas for growth and differentiation.
- Accessing data pools beyond financial data could open up new opportunities for innovation and value creation.
- Customers increasingly value control and flexibility in bill payments, and open banking can provide solutions.
- Combining payment data with financial data can enhance affordability checks and improve financial well-being.
- Open banking has the potential to prevent fraud and protect customers through strong authentication and data validation.
- As open banking evolves, it will be important to stay competitive and aligned with European legislation.
- Open banking can contribute to addressing the cost of living crisis by providing tools for financial management and flexibility.
- The future of open banking may involve accessing and leveraging non-financial data, such as loyalty points, for added value.
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