In Ross Republic’s very first podcast, Mikko and Adrian discuss the effects of the global regulatory trend of opening up the gold mines of incumbent banks, and the drive to increase competition, foster innovation, make payments more secure and strengthen consumer protection.
The last few years have seen an ongoing debate on what exactly should the open banking initiatives become and how to implement them. Furthermore, the role of traditional banks has been under intense discussion, with many predicting that open banking will lead to a dramatic change of the market.
After the hype, however, reality usually kicks in. API-driven banking is a perfect example of how the effects of new technologies and regulations are overestimated in the short-term and furthermore perhaps underestimated in the long-term. Now, as the dust has settled somewhat after PSD2 came into effect roughly a year ago, is a good time to review what has happened in the field of open banking and to evaluate whether the market has really changed.