The Open Finance Association (OFA) has been launched with 13 fintechs as members.
Why: To further open up financial data and payments for consumers and businesses through API (application programming interfaces) technology.
What does it aim to do?
- enable consumers and businesses to access their data across all their financial accounts, and make use of it via trusted third party providers;
- develop and drive the adoption of a competitive and convenient instant payment method based on open payments;
- promote a sustainable, well-functioning open finance ecosystem by creating the right balance of requirements and incentives for all participants.
The bigger picture: There´s greater comfort together and fintechs, hit recently by the financial downturn, are feeling the heat. Marshalled into an Association, will they have better success lobbying the Government, rgeulators and the media who still don´t invite them to join the TradFi gang? But with some 1600 rcognised fintechs in the UK, this is early doors yet. They need momentum if they are to beat the threat from a resurgent TradFi.
Open finance is the next step in the evolution of open banking. By bringing the benefits of open banking to a broader array of financial products, open finance will give consumers and businesses greater control and visibility of their economic lives.
The Open Finance Association brings together fintechs to help drive the move towards open finance across Europe and believes secure, open APIs are key to competition and innovation.
Nilixa Devlukia is Chair. Devlukia, who has held senior roles at the Financial Conduct Authority, the Open Banking Implementation Entity, and the European Banking Authority, said: “Now is the time for industry, policy makers and regulators to come together and make open finance a reality. 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. I am excited to work with our members, who are true leaders and innovators, and look forward to engaging with stakeholders at all levels to achieve OFA’s vision.”
The Open Finance Association operates from both Brussels and London, and aims to help to shape important open finance policy developments in both jurisdictions.