Digital Finance Summit 2022 https://www.digitalfinancesummit.com/

1. ©2022 Visa. All rights reserved. Visa Confidential 1
From Open Banking to Open
Finance and beyond
4th
October 2022
Laurent Bailly
Head of Product Strategy
Global Open Banking

2. ©2022 Visa. All rights reserved. Visa Confidential 2
‘Open banking is the exchange of data and
services between financial institutions and
third-party providers to deliver enhanced
capabilities and experiences to the market.’
Source: Tink, a Visa solution

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Open banking is not a solution itself, it is a mean to an end
Business
processes
empowered
Description
Connect and fetch
end-users transaction data
and prove
truthfulness behind an
applicant.
Use transaction data to
strengthen
creditworthiness
assessments and
customer analytics while
making the overall
customer journey more
simple.
Aggregate users financial
spending into one view
and increase engagement
with tools and insights,
while enabling new
propositions.
Drive new types of
customer behaviour with
A2A payment solutions for
request to pay, checkouts
and collection
experiences.
Onboarding Risk decisioning Financial management Payment services
Impacting KPIs ● Fraud rate
● Conversion rate
● Acceptance rate
● GINI
● Cost per loan originated
● NPS
● ARPU
● Cost per payment
● NPS
Source: Tink, a Visa solution

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We are continuing on the journey to increasingly open data ecosystems
that will enable new data-driven innovative services
Open data
All other data and services:
Email, utility, telco, health, etc.
Open finance
Non-banking data and services:
Insurance, pension, tax, identity, etc.
Banking data and services:
Payments, savings, loans, etc.
Open banking
Source: Tink, a Visa solution
Your data
Consumer consent
APIs

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Similar directions in the UK and EEA point to a more commercially focused future
for Open Banking on the road to Open Finance
Adapting governance
• Post CMA Successor entity for
OBIE
• PSD2 review
• SEPA Payment Account Access
Scheme (SPAA)
Enhanced APIs • “Variable Recurring Payments”
• “Premium Features” including
“Dynamic recurring Payments”
Future Vision for “Open Data
Ecosystem”
• FCA “Open Finance” position paper
• New open finance framework expected
in Q2 2023, including “Open Data”
within SPAA

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Globally, Open Banking is converging, despite different regulatory catalysts and
commercial drivers
Europe / UK – General obligations (PSD2)
Specific directions (CMA order), technical
standards (EBA-RTS), upcoming instant
payments regulation
India – Government-led infrastructure
development notably UPI and Open Data Hub
Australia - Open Banking initiative by ACCC
under general Consumer Data Right legislation
USA – Without OB regulation, commercial models
developed Privacy Act and standard as under
FDX (Financial Data eXchange)
Premium APIs
- Remuneration of asset holders
- Liability shift to TPPs
- Scheme-like arrangements
Convergence of Commercial and Regulated
models
- Natural Consequence of premium APIs
- Mutually beneficial collaboration
Open finance, open data
- Extension of API-based service ecosystem
- General data access rights (e.g. UK Data
Protection and Digital Information Bill, Australia
Consumer Data Right, EU Data Act.)
Differing approaches Similar outcomes

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Affordability is top of mind for consumers,
lenders and regulators
Areas where Open Banking could help
Data could help increase resilience in an uncertain world
Example of lending
Source: ECB web site Non performing loans page (https://www.bankingsupervision.europa.eu/banking/priorities/npl/html/index.en.html)
● Insolvencies and non-performing loans
● Protecting the vulnerable
● Rising concerns over interest-free credit
● Consumer credit in the post-pandemic era
€1.4 trillion
European Central Bank (ECB)
expecting a sharp increase in
non-performing loans
Expectation: €1.4 trillion by the end
of 2022
Helping lenders navigate the current economic
climate with the help of open banking
Learn more in latest Tink publication
(https://tink.com/blog/open-banking/report-lending-unlock
ed/)
Instantly verify an applicant’s income
with Income Check. Onboard faster,
with a fuller picture.
Assess and categorise
income streams
Get a complete overview of
affordability
Detect risky patterns
Use Expense Check to determine
spending patterns and how much is
recurring on a monthly basis.
Assess risk profile based on
spending behaviors using Risk
Insights

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