How Open Banking is disrupting financial services - except for payments
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Open Banking enables third-parties to access consumer-authorized financial data. Many banks already allow this to selected third parties, such as money management or accounting software providers. However, legislators in many countries are now mandating that all banks, and other financial services providers, must allow consumer-authorized financial data to any regulated third party. In Europe, this is driving fintech competition, especially in markets like consumer lending. In payments, Open Banking is also supposed to drive fintech innovation, such as take up of real-time Faster Payments. However, so far, this is not likely to change the dominant position of the global payment card networks or help merchants.