Open Banking & SCA Forum 2023 - Europe | Kinfos Events | 22 February 2023 | Mainhaus Stadthotel Frankfurt, Lange Str. 26, 60311 Frankfurt am Main, Germany

What is Open Banking?
Open Banking is a protected way of sharing customer’s financial information with third-party providers. With customer’s consent, banks can share account and transaction details with third parties through application programming interfaces (API). Open APIs enable exchange of information between the bank and third-party software provider. This helps banks to offer tailored products and services to acquire and retain customers.

For third-party service providers to be fully authorized to use Open Banking APIs, they must be registered under one of or both of the following:

AISP– Stands for Account Information Service Provider

PISP– Stands for Payment Initiation Service Provider

What are Open APIs?
Open APIs expose a range of data to third-party financial service solution providers. They enable third-party developers to build applications and services around the financial institution.
These APIs are designed to support Open Banking regulations. Through the adoption and deployment of APIs, banks can extend and enhance their native services and offerings. Banks can rapidly advance their digital transformation agenda in the Open Banking world by leveraging third-party applications and service ecosystems that are enabled by API

What are the benefits of Open Banking?

Advantages of Open Banking to Customers

Customer reaps the benefit of choice:
Most banks offer similar services that are limited in scope. More importantly, most banks aren’t really good financial advisors. With Open Banking, customers can reap benefit of choice as they have multiple options, or service providers to choose from. Therefore, you are not forced to use any specific software because it is bundled with your account.
More customized and relevant product offerings:
Most banking apps have the same set of service options. With entry of newer service providers, the factor of customisation and service personalisation will be introduced, which will massively benefit customers.

Advantages of Open Banking to Fintech

Easy Way For Banks to Extend Their Services:
Most banks have embarked on the Fintech journey. Open banking provides them with the opportunity to expand their offering sand include more services under their umbrella.
Meet The Customer Requirements:
Today’s customers are always looking for more. With open banking, financial institutions will have so much more to offer to their customers and keep them satisfied.

Open Banking’s Five Key Challenges to banks

Deep customer apathy
The prerequisite for open banking is participation by customers who voluntarily agree to allow access to their data. It’s vital for open banking to take off. However, open banking aspirations appear to have fallen on deaf ears — on an average only 26% of customers globally favor adopting open banking; this percentage is much higher in emerging markets.

Lack of customer awareness.
As with any significant change, open banking requires massive education to familiarize customers with the concept and generate buy in. Customer apathy may well result from banks’ failure to effectively communicate and educate customers about the changes to banking terms and conditions that precede open banking.

Better entrenched competition.
As banks navigate their way to the digital era, they are confronted by several non-bank forces such as fintechs, new pure-digital entities, large non-banks such as Amazon and technology vendors. Each of these have begun rewriting the rules of the banking game and are creating a new banking ecosystem, challenging banks to respond.

Data sharing anxiety.
Open banking relies on data sharing. This marks a paradigm shift for banks. Their difficulties range from the prospect of losing control over customer data and product cannibalization that might result. Banks appear to be struggling with how much customer data they can subject to exposure in order to participate meaningfully in the open banking ecosystem.

Legacy systems constraints.
Traditionally, departmental structures, product-centricity and compliance goals have influenced the rollout of core banking systems. Such legacy systems have become complex over time and are preventing effective interoperability with open banking APIs. The critical shift to customer-centric systems and agility enables banks to overcome the limitations of siloed legacy systems.

What Is Strong Customer Authentication?
Strong customer authentication (SCA) is a requirement of the EU Revised Directive on Payment Services (PSD2) on payment service providers within the European Economic Area. The requirement ensures that electronic payments are performed with multi-factor authentication, to increase the security of electronic payments. Physical card transactions already commonly have what could be termed strong customer authentication in the EU (Chip and PIN), but this has not generally been true for Internet transactions across the EU prior to the implementation of the requirement, and many contactless card payments do not use a second authentication factor.

What is the Strong Customer Authentication requirement?
SCA will require payments to be authenticated using at least two of the following three elements:
• Something that the customer knows (e.g., password or security question)
• Something the customer has (e.g., phone or hardware token)
• Something the customer is (e.g., fingerprint or face ID)

Which payments will be covered under SCA?
Strong Customer Authentication will apply to customer-initiated online payments within Europe. Most card payments and all credit transfers will require Strong Customer Authentication. Recurring direct debits are considered merchant-initiated and will not require SCA. A card payment will be in scope of the regulation if the cardholder’s bank and the business’s payment provider are both located in the European Economic Area (EEA).

What are the implications of SCA?
One of the most important implication of Strong Customer Authentication (SCA) is that it will drive acquirers and other entities in the payment processing ecosystem to improve their fraud rate as that would mean they could offer frictionless flow at higher thresholds which will mean improved security in the payments space but it can also have an negative impact as its implementation can hinder customer experience and place additional burdens on merchants and Payment Service Providers (PSPs).

2023 Speakers

Sonia Laporta Báez
Chief Technology Officer, Santander Consumer Bank

Markus H.-P. Müller
MD, Chief Investment Officer ESG, Deutsche Bank

Camilla Åkerman
Secretary General, Nordic Payments Council

Arturo González
Co-Chair Sepa Payments Access Scheme, European Payments Council

Daniel Szmukler
Director-Head of Innovation, ABE | EBA

Diederik Bruggink
Head of Innovation and Payments, ESBG | WSBI

Joris Hensen
Founder and Co-Lead - API Program, Deutsche Bank

Wijnand Machielse
Editor, The Berlin Group

Viky Manaila
President, Cloud Signature Consortium

Pilar Fragalà
Chief Commercial Officer, CBI

Torsten Lodderstedt
Co-Author and Working Group Co-Chair, Open ID

Max Joachim Nitscheadd
Partner, BCG

Claudia Wiese
Head of Transaction Banking Operations, Solarisbank

Silvia Birla
Director - Retail & Corporate Product, NovaKBM

Socheat Chahay
Head of Digital Transformation- Open Banking lead, Bpifrance

Sanja Iliev
Product Owner -API Banking, Commerzbank

Dr. Steinar Birkeland
Sen. Subject Lead, DNB

Aidas Malakauskas
Head of Financing Transformation, Swedbank

Tolga Yurteri
Digital Banking Head, NovaKBM

Roger Wisler
Senior Open Banking Product Owner, Zurcher Kantonalbank

Emile Hennequin
Director Sales | Cash & Liquidity Management, ABN Amro Bank

Nicolo Mozzatto
Open Banking Project Manager, Intesa San Paolo

Stepan Kouba
Open Banking Leader, Ceska Sporitelna

Björn Zaksek
Product Manager & Developer Cash Management, Raiffeisen Bank International

Andrew Gómez
Director, Lipis Advisors

Adam Preis
EMEA Product and Solution Strategist, ForgeRock

Stephen Winyard
Chief Sales Officer, Saltedge

Steve Pannifer
Managing Director, Consult Hyperion

Masha Cilliers
Founder and Principal Consultant, Payments Options Ltd.

Dr. Anthony Evans
CEO, Open Banking Delivery

Anette Broløs
Director and Founder, Finthropology

2023 Sponsors and Partners

SPONSORS:
• Forgerock
• Saltedge
• Gini
• Worldline
• SurePay

MEDIA PARTNERS:
• Payments Consulting Network
• PCN
• Acuity Market Intelligence
• Coinpedia
• FinTech Belgium
• Events Get
• Evvnt
• Smart Insights
• The Paypers
• Financial IT
• Clocate.com
• Fintech Review
• 10 Times
• Bandwidth Recruitment
• Industry Events
• Eventbrite
• StartUp City
• SmartMoneyMatch
• Global Risk Community