This Saturday saw the one-year anniversary of the coming into force of open banking and PSD2 in the UK. Our open banking specialists share their predictions for the year ahead.
David Gardner, technology partner
"In 2018, much of the focus in open banking was on compliance projects – particularly for the banks. We are now moving into a new year with far more collaboration and customer-facing innovation on the horizon. The core open banking proposition favours input from multiple parties: when they work together, different players can maximise their respective strengths, creating new products that are more than the sum of their parts. We can expect lots of announcements from established banks, challengers, PSPs and fintechs about new products and new ways of working together."
Tim Waller, commercial partner and payments specialist
"GAFA (Google, Amazon, Facebook and Apple) have already disrupted the payments market and open banking creates opportunities for them to expand their influence further still. I expect to see more announcements from the tech giants in the year ahead."
Bryan Shaw, corporate associate
"2018 saw several new UK fintech unicorns gallop onto the scene. This year, I predict that at least one will announce an IPO or be acquired by a big-tech firm – big-tech is seen as the biggest perceived threat to banks and non-banks in the open banking space according to our latest research report Opportunity Knocks."
Read Bryan's article for The Fintech Times on 5 fintech predictions for 2019
Brian Craig, data privacy and protection legal director
"The first product launches in 2018 had a positive reaction from the customers who adopted them. As the market matures, we will start to see which messages resonate particularly well with customers. In order to increase customer adoption, providers need to focus on communicating effectively about how the security protocols built into open banking work to protect customers and their data."
Nick Fenner, IP partner
"We should see a wave of trade mark applications, domain name applications and IP licence agreements, as new and existing businesses seek to register, adapt, protect and monetise their intellectual property. I would also anticipate some challenges given the rate at which the market is expanding and the competitive nature of open banking."
Graham Walters, financial services partner
"Data sharing via open banking will be used increasingly in the mortgage lending market to improve the efficiency of underwriting checks and to support lenders and customers with the effective management of mortgage arrears."