The Business Case for Open Finance
In a financial world buzzing with buzzwords, 'Open Finance' stands out as a genuine catalyst for change. But what does it actually mean in practice? How are real-world deployments shaping the future of finance, and what are the crucial lessons learned along the way?
At the upcoming FDX Global Summit this month, a panel of industry veterans will delve into these questions, offering practical insights and actionable strategies. To give you a sneak peek, we're introducing the experts and asking them a few questions that will certainly inspire you to attend their session.
Derek Colfer, Founder and CEO, OneTap2 (moderator) – With a proven track record of driving digital product innovation, notably as the former Head of Digital Products and Innovation at Visa Canada and VP of Digital Products at Central 1, Derek has a lifetime of experience in digital payments and transformation. We asked Derek, as a seasoned leader in digital products and innovation, you've witnessed the evolution of financial technology firsthand. What's the most significant shift you've seen in consumer expectations regarding financial services, and how does open finance address those changing needs?
The biggest shift I've seen is that consumers now expect financial services to be seamless, embedded, and rewarding—on their terms. Open finance makes that possible by giving users control over their data and enabling frictionless movement between providers. In this new paradigm, legacy constructs like '5-10 business days' and other forms of constructive obstruction simply won’t be tolerated. Expectations have changed—and rightly so.
Lewis Poe, CTO Caspian One Open Data - As the former Global Head of Equity Derivatives at Deutsche Bank Lewis now leads as CTO of Caspian One Open Data where he pioneered the first-to-market FDX Standards solution for a CIBC PoC, and currently onboarding/go-live with Canadian credit unions. We asked our CTO, “for traditional financial institutions navigating this shift and the upcoming regulatory deadlines, what do you see as the single most significant business opportunity that arises from embracing collaboration with the fintech community?
From a business perspective, the most significant opportunity lies in the evolution from a vertically integrated model to operating within a collaborative network. This opens entirely new distribution channels, allowing financial institutions to seamlessly cross-sell core services and banking models through fintech integrations – a concept often termed ‘embedded finance.’ By strategically partnering, banks can reach new demographics and tap into previously inaccessible client segments within emerging digital ecosystems, offering a powerful avenue for growth and revenue generation beyond their traditional boundaries.
Bryan Schneider, Founder & Managing Partner, Clear Sky Consulting - With a career spanning more than 20 years, Bryan Schneider has cultivated a unique perspective on the payments and global cash management sectors. His experience encompasses strategic roles at global banking giants like Citi, HSBC, and U.S. Bank, as well as influential fintech companies like Yodlee and Metavante. He currently is Founder & Managing Partner at Clear Sky Consultants. We asked Bryan, “what's the most critical factor for traditional financial institutions to consider when forging strategic alliances in the open finance ecosystem?”
I'd say the most critical factors for traditional financial institutions (TradFIs) to consider when forging strategic alliances in the open finance ecosystem are data security, privacy, and scalability. Ensuring robust cybersecurity measures, secure data-sharing protocols, and compliance with regulatory standards is essential for maintaining customer trust and avoiding legal or reputational damage. Alliances must prioritize partners with proven security frameworks and aligned compliance strategies to safeguard sensitive financial data. Beyond security and privacy, FIs will need to deliver a scalable platform to vet, contract with, integrate with, and go to market alongside their partners.
We invite you to join us at the FDX Global Summit April 21-24 in Maryland to explore the real-world implications of open finance and discover how your organization can leverage open data to thrive in the digital age. Be sure to catch the panel on Wednesday, April 23rd, at 2:35pm located in located in National Harbor 4-5. And don’t forget to join us for post-panel drinks where you can ask the group questions over a pint.
We look forward to seeing you there!
