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OPEN by Eliga June insights

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Eliga’s article by Chris Noakes was promoted by the Daily News Edit of Open Future World, a platform dedicated to ‘Featuring people worth reading, and companies worth reading about.’  

 

We’re thrilled that our topic expertise is helping connect peers in the open banking and open finance community. As we head into the second half of the year, we can see real momentum in the open banking community, accelerated by acquisitions as well as innovation-led partnerships in investment and other industries. June was an eventful month of trending news. We've gathered the most interesting stories to help keep our network informed.

 

Visa acquires Tink

Undoubtedly, Visa acquiring Tink signals a new chapter in open banking and the future of financial services. Teaming up with Visa means that Tink will ‘move faster and reach further than ever before.' In the official press release, Visa noted that the combination of its proven infrastructure and sustained investment in resilience, cybersecurity and fraud prevention with Tink’s APIs, technology and customer relationships will accelerate adoption in Europe.

At the moment, there are more than 2.5 million people using open banking in the UK according to the OBIE. This figure will continue to grow as more businesses rush to adopt the technology, following Visa's move. 

 

Open banking and investing

As open banking innovation and partner ecosystems evolve, we’re seeing an increase in investment news. Some asset and wealth managers are already using open banking to leverage their customers’ data to improve operational processes and decision-making. Coutts' Wealth Portrait is a great example of open banking being used in investment to deliver more personalised products and services. From Nutmeg to TrueLayer, there has been plenty of investing news at the end of May and throughout June. Here are a few highlights: 

 

Nutmeg’s next chapter

On June 17, Nutmeg announced it will be working closely with JP Morgan Chase & Co to further develop its offering to the benefit of all its clients. Nutmeg’s chief executive, Neil Alexander stated that he was ‘impressed with the digital experience that Chase is building for the UK’. This next chapter will bring a wider range of products and series to its customers, helping it expand into new markets.

 

Wealthify partners with Tink

This followed Wealthify’s partnership with Tink at the end of May. The trading platform teamed up with Tink to transform the way users top up their accounts, using Tink's payment initiation service to transfer investment sums. Previously, Wealhtify’s customers had to initiate payments manually through online or app-based banking.

 

HeyTrade partners with TrueLayer

Similarly, HeyTrade partnered with TrueLayer, so customers can connect their primary bank account to the trading app. This allows instant and secure funding using Payments Initiation. Quicker access to funding will allow investors to act quickly on investment opportunities to align with trading cycles.

 

Third-Party Providers finalists announced

Open Banking Expo announced its shortlist, which included a category for Best Third-Party Providers (TPPs). The winners will be revealed in a virtual ceremony during FinTech Week London on July 15 at 16:00 BST. The list of finalists included:

 

  • Ecospend: Founded in 2017, this financial data and payments platform leveraged open banking opportunities to secure an HMRC tender to provide an account-to-account payment system solution. Most recently, it partnered with DNA Payments Group.

 

  • Moneyhub Enterprise: In 2014, Moneyhub noticed a ‘big flaw’ in how consumers viewed and interacted with their data; it developed an app to show all users’ finances in one place. Most recently, Moneyhub and Open Banking Excellence created QR codes for charity donations.

 

  • Payit by NatWest: In pilot since 2018, Payit allows consumers to select which banks they want to use, redirecting them to their bank’s mobile or online banking app to complete the payment. NatWest is one of the first banks to use open banking as a payment initiation service provider (PISP), rather than an account information aggregator (AISP).

 

  • Plaid: Founded in 2013, this financial services company’s platform connects 3,000+ apps to 11,000+ financial institutions with one single API. The company recently announced an open finance partnership with Capital One. It follows agreements with U.S. Bank, JPMorgan Chase, Wells Fargo, and others.

 

  • Token.io: In 2016, Token helped banks with the regulatory complexity. The company is now driving the shift from card to bank payments. Earlier this year, Token partnered with BNP Paribas to launch an instant payment initiative for merchant customers. In January, it secured a $15 million Series B funding round.

 

  • TrueLayer: With the goal of becoming the leading provider of APIs to drive financial innovation, TrueLayer provides access to data and payments. The use of TrueLayer’s payments API has grown rapidly by 600x over the last year. The company was set up in 2016 and raised $70M in April of this year. It recently announced its new Open Banking API verification solution.

Open banking points to consider

  • How will Visa’s acquisition of Tink accelerate open banking innovation?
  • How will partner ecosystems evolve in the coming months?

 

Follow Eliga on LinkedIn for more industry insights and the latest open banking news.