Open banking is currently on everyone’s lips and was also the subject of numerous discussions at the SFF19 (Swiss Fintech Fair). It was prominent in the panel discussion “Quo vadis Open Banking Switzerland?”, in which four currently active working groups participated (“Common API” from SFTI, “OpenBankingProject.ch” from BEI St. Gallen, “Corporate API” from SIX and the API working group of the Swiss Bankers Association).
Our partner SWIFT is also concerned with this topic and has recently launched a library with a standardised API. Such standards can play a very central role in the development of Open Banking, as their adoption will accelerate the introduction of new services and reduce the overall burden of implementation. As long as each bank continues to offer its own custom API, Fintechs and other third party providers will be obliged to adapt their offerings to the different data structures, workflows and security approaches of each bank – leading to increased complexity, costs and time for implementation, which the providers could otherwise better invest in their core services or differentiation features. This is precisely the reality today, especially in the area of securities, where the above-mentioned initiatives will not be able to present solutions anytime in the near future. This will inevitably result in considerable redundancy throughout the Fintech community, as the same interfaces to the same banks and the associated data reconciliation processes – possibly for the same clients – will have to be replicated time and time again by each Fintech with no added value for the community as a whole.
Clearly this represents a waste of resources. The solution is: Open Banking – or: ONE PM!
Our new product “ONE API” provides a remedy in this area by taking over the management of the entire interface to the banks, automating the consolidation and reconciliation of the securities accounts for our customers and making the result available via a fully documented interface (API). Having presented the “ONE API” to a wider audience for the first time at the fair in the Zurich power plant and prompting a number of interesting discussions at our stand, we now look forward to the further development and innovation of the ONE PM product range driven by a continuous dialogue with our partners.