Four main drivers:1) Malpractice, Distrust, Corruption and Fraud2) Missing Web 2.0 approaches3) Need disclosure / privacy options including Open Data4) Simple API protocols missing / lacking
InspirationAbout 5 Years ago I wasThinking aboutCorruption.......and a new type of bank.. Image source: John C. McCall and Christey Carwile, Other Africas, http://mccoy.lib.siu.edu/jmccall/otherafricas/
Then - Summer 2008 - Working in atheatre in Athens..I said: “Lots of EU fundedprojects here.” Lots ofSet designer said: “corruption here!”2 years later,Greece is in bigtrouble.....
1 Corruption and Fraud: Over €30 Billion lost each year in Europe. 78% of European citizens think corruption is a problem in their own country. Corruption - most talked-about global problem, according to a new BBC poll of more than 13,000 people across 26 countries.Corruption distorts markets and competition, breeds cynicism... underminesthe rule of law... damages government legitimacy, and corrodes the integrityof the private sector - Ben W. Heineman Jr. and Fritz Heimann, The Long War against Corruption
Accounting / Banking Scandals,Corporate and financial malpracticeSome examples of failed banks: Bear Stearns,Merrill Lynch, Lehman Brothers, Northern Rock,Anglo Irish Bank, Glitnir...http://en.wikipedia.org/wiki/Accounting_scandals2007–2010 Financial Crisis is the worse since the 1930s great depression...
Charitable Status?Just a few examples of recent scandals involving charities:
Aid Money. Aiding who?The World Bank StAR initiative was setup torecover stolen assets.
“Corrupt acts are almost always hidden. If you are behavinghonestly in the public or private sector, you will rarely havea need to hide your actions.“ - Corruption, Inequality, and the Rule of Law, Eric M. Uslaner CorruptionInequality +Distrust +Information Deficit
Less CorruptionInequality +Distrust + EmpowermentWeak Law +Information Deficit Timely Transparency Good for Democracy!
Public “Financial Debug Tools”Fraudulent and Corrupt behaviour would be easier to spot / less likely to happen if the public had access to “Financial Debug Tools”
2 Banks not very Web 2.0 – Dont allow easy integration with rd 3 party tools and services.
Most people use softwareprovided by their bank toconnect to their bank..
But services such as Twitter andFlickr prove the benefits of rdenabling 3 party software toaccess services: The localmonopoly is disrupted.An “API” allows original, highquality applications to flourish.
e.g. this moneybunny app tags bank statements usingemails from vendors for easier accounting. (currently using HBCI)
3 Financial Privacy / Disclosure shouldnt have to be strictly ON or OFF
Current status:A Traditional Savings Account. No one else can (should) login. Traditional Savings AccountLevel of Detail financial account sub some full transaction “comfort” balance category transaction details indicator totals details hiddenFrequency yearly quarterly monthly weekly daily real-timeDisclosure no sharing share share with share with share with (full privacy) with tax company friends everyone office (public)
But what if you want to share with your accountant / tax office? Current Account shared with accountantLevel of Detail financial account sub some full transaction “comfort” balance category transaction details indicator totals details hiddenFrequency yearly quarterly monthly weekly daily real-timeDisclosure no sharing share with share with share with share with (full privacy) accountant / company friends everyone tax office (public)
What if a Company wants to easily share its financial transactions with itsboard / share holders / team? CompanyLevel of Detail financial account sub some full transaction “comfort” balance category transaction details indicator totals details hiddenFrequency yearly quarterly monthly weekly daily real-timeDisclosure no sharing share share with share with share with (full privacy) with tax company friends everyone office (public)
A Company● Could access a better choice of financial softwareapplications, platforms and services.● Could grant read access to key stake holders.● Could enable its IT staff to more easily write andintegrate secure applications across multiple bankaccounts in different countries.
An NGO or Charity could practice public transparency by revealingtransactions to the web in real time. NGO / CharityLevel of Detail financial account sub some full transaction “comfort” balance category transaction details indicator totals details hiddenFrequency yearly quarterly monthly weekly daily real-timeDisclosure no sharing share share with share with share with (full privacy) with tax company friends everyone office (public)
A Charity ● Can better engage key stake holders in their financial affairs. ● Receive comments, better deal suggestions and fraud alerts from the public. ● Can demonstrate accountablilty, transparency and value for money. ● Can better integrate with financial systems and networks.• “The Public donates, The Public sees.”
Publicly Funded Projects● Citizens pay, Citizens see.. - where their money goes in real time.● Foster greater trust and engagement in Governments / EU.● Crowd source alerts of fraudulent behaviour. •“High Trust – High Distrust” Lewicki, McAllistair, Bies 1998, Trust and distrust: new relationships and realities.
4Existing Protocols: • HBCI/FinTS in German speaking countries (and OFX in the U.S.A.)BUT.. • Non standard server side implementations make client implementation difficult. • Development and bug fixing is slow • No 3rd party authorisation. • Full login credentials required, so the user grants more access rights to the 3 rd party web application than needed. Ths violates banks Terms of Service • Not RESTful / Not worldwide / Not Open SourceThe Open Bank Project will leverage existing protocols where they exist and provide connectors for them.
Banks and theircustomers benefitfrom an APIAn Open Source RESTful APIgateway would greatly increase thechoice of tools, software andservices available to a bankscustomers in a trustworthy, securemanner...This is good for the bank – and its customers!
Greater application diversity, originality, choice,support options etc.
An Open Bank – all accounts open to the Public- Attractive to those engaged in transparency- New business models and communities emerge- Transactions of the bank itself are transparent- Community can make “better deal” suggestions- Open Source software is used and created, furtherpromoting a healthy financial technical ecosystem.
The Open Bank Project Aims to:● Open transaction data to larger groups of people and softwareapplications● Raise the bar of financial transparency● Enable more enjoyable and productive ways to accesstransaction dataHow?• Apply Web 2.0, Secure Internet Standards, RFC● Use and produce Open Source technology● Crowd Source: ideas, feedback, bugs + trust networks(Examples: Wikipedia, Flickr, Facebook, Apache, Postgres, Firefox....)
Research Topics● Multi peer trust networks (Know your customer)● Generic auth connectors● Secure Actor based systems (Scala)● DSLs● Multiple identity authorities Comifin● Access control. PoSecCo● Socio questions: privacy, legal, ABC4Trust● data hashing. ENDORSE PicosGet input from other innovations Parsifalsuch as Bit Coin, Open Coin and Awissenetother research projects. Inco-Trust Spacios
TeamSimon Redfern (Founder). Web Applications / Database Engineer, BerlinIsmail Chaib, TESOBEJan Bölsche. Independent Software Architect, BerlinBruno Girin. Independent Internet Banking Solutions Architect, LondonFlorent André. Software Engineer (member of Apache foundation)Emmanuel Lecharny, Software Engineer (member of Apache foundation)Some Partners TESOBE, Berlin, Germany- Raul Soriano, PROS, Spain Fidor Bank AG, Munich, Germany- Atos Origin, Spain- Banca Civica, Spain ATB, Bremen, Germanyand more... CONTEXTIS , London, UK CNRS, France Sigma Orionis
In Conclusion:The OPEN BANK PROJECT creates a radical‘opening’ of banking transactions. It promotes bothfinancial transparency and security by engagingpublic vigilance (‘many eyes’), increasingcustomers’ confidence in adopting organizationsand their financial institutions.
ContactSimon Redfernsimon AT tesobe DOT comhttp://www.openbankproject.com@OpenBankProject