News

13 major European fintechs launch the Open Finance Association

Thursday 22 September 2022 10:35 CET | News

A group of 13 fintechs including the likes of Token, TrueLayer, Plaid, Worldline or Yapily have launched the Open Finance Association (OFA) to further open up financial data and payments through API tech. 

 

As explained by association officials in the press release announcing the launch, with the introduction of PSD2 in 2016 consumers and businesses were given the right, for the first time, to access their payment accounts via trusted third-party providers (Open Banking). Open Finance is presented as the next step in the evolution of Open Banking and it promises to give consumers and businesses greater control and visibility of their economic lives.

Nilixa Devlukia was named Chair of the organisation. Devlukia has previously held senior roles at the Financial Conduct Authority, the Open Banking Implementation Entity, and the European Banking Authority. According to the new Chair, ‘through the promotion of an API-focused agenda in both payments and data, OFA aims to promote a healthy and sustainable fintech ecosystem, in which consumers and businesses all benefit from improved, innovative services.’

A group of 13 fintechs including the likes of Token, TrueLayer, Plaid, Worldline or Yapily have launched the Open Finance Association (OFA) to further open up financial data and payments through API tech.

Goals and manifesto for the Open Finance Association

OFA’s primary focus is to bring together leading fintechs to help drive the move towards Open Finance across Europe and believes secure, open APIs are key to competition and innovation in this space.

OFA priorities are to enable consumers and businesses to access their data across all their financial accounts, and make use of it via trusted third-party providers. The association will reportedly focus on developing and driving the adoption of a competitive and convenient instant payment method based on open payments.

The OFA has three delineated aims inscribed in its manifesto, as follows:

1. For consumers to access their data across all their financial accounts and be able to use it with trusted third party providers

For this goal to be met, the OFA explains that financial institutions need to be required and incentivised to open a broader range of financial accounts, other than just payment accounts.  Moreover, access needs to be facilitated using secure APIs, ensuring the right level of trust and willingness to share data. This will expand consumer access to better financial products while guaranteeing optimal control of their data.

2. A competitive instant payment method based on open APIs

The association manifest dictates that this goal can be met by incentivising financial institutions to provide high-quality payment APIs and user journeys. Full coverage of instant account-to-account payments, free to consumers is a must, and cross border barriers such as IBAN discrimination must be removed.

3. A healthy and sustainable Open Finance ecosystem

Financial institutions must open access to data and payments to third-party providers via secure, open APIs. Harmonisation of rules and standards is necessary in order to minimise fragmentation and promote consistency. This can be achieved, the OFA explains, through the creation of an independent Open Finance standards body to oversee implementation and maintenance of Open Finance APIs.   

The OFA promotes a system of clear rules and guidelines to provide commercial opportunities for both third-party providers and financial institutions to benefit from Open Finance. 

Members of the newly launched OFA

OFA is a not-for-profit association, with an independent secretariat based in both Brussels and London Members currently include: Armalytix, Crezco, Nuapay, finAPI, GoCardless, Ordo, Plaid, Token, TrueLayer, Volt, Worldpay, Worldline, and Yapily.

More: Link


Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: Open Finance, Open Banking, Open Banking payments, Open Banking Ecosystem, API standardisation
Categories: Banking & Fintech
Companies: GoCardless, Open Finance Association, Worldline, Worldpay, Yapily
Countries: Belgium, United Kingdom
This article is part of category

Banking & Fintech

GoCardless

|

Open Finance Association

|

Worldline

|

Worldpay

|

Yapily

|
Discover all the Company news on GoCardless and other articles related to GoCardless in The Paypers News, Reports, and insights on the payments and fintech industry: