In this recent interview with business journalist Annette van Soest, Yolt CEO Nic Weng Kan talks through what open banking and PSD2 is, how it can be used, and why security is at the heart of PSD2 regulations and responsible open banking solutions.
Highlights of the interview
The level of awareness of open banking, and how Yolt fits in
"A lot of companies do not understand how open banking works and how it can help them – there is a lack of awareness. But the second part is that people think it is very complicated and they need to connect to the banks themselves. What people need to understand is that we connect to the banks on your behalf, and we offer you the data in a structured manner. The only thing you have to do is take this data and use it for the purpose you want to use it for."
“Imagine you are applying for a mortgage, if your bank knows everything about you they can make you a very good offer. What open banking does is give you the ability to share that with another bank and ask them to match the offer, or do better. The premise is really a free flow of information for the benefit of the consumer, and also more efficiency and competition in the market.”
"Open banking is interesting for any company that has to take a payment and the simple example I give is that of a plumber who repaired something for me at home. The traditional way for him to be paid would be to send me an invoice and I’d send a cheque, but now he can send me a link or a QR code and I can pay him immediately. He receives the money before leaving the house. He’s happy, I’m sorted, and everything works. And this payment is a fraction of the cost of traditional payment methods."
"What we see with lenders in some of the data that we’ve released is that you have a much higher acceptance rate, because lenders have a tendency to play it safe, but for the same level of risk, they can accept more customers based on open banking data."
You can listen to the entire podcast from the Youtube embed below:
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