CHALLENGES IN OPEN BANKING - WHAT ARE THE PRACTICAL STEPS TO BE TAKEN NOW?

The advance of open banking is an inevitable fact and it will inevitably change the digital landscape of the banking industry. However, open banking is not without its share of challenges with, for example, the Payment Services Directive (PSD2) and the General Data Protection Regulation (GDPR) in the EU testing the cybersecurity capabilities of banks,' and the lack of enthusiasm by consumers to this 'game changing' concept slowing its progress and perceived success. As in the EU, in Australia the changes are driven by regulatory regimes, rather than the market, which sets the dominant agendas unlike in the US where they are market driven. The questions are how does each of the participants in open banking position itself with in the new landscape and what can drive the further progress of open banking? This paper is taking an albeit brief look at the developments in the EU and Australia and looks at the issues of the past, present and future which need to be mastered in order to profit and function in the new regulatory environment. The lessons are that inaction - that is sitting on the fence - is dangerous and the time is now to plan and take action to occupy a prominent place in the open banking ecosystem before the arrival of the BigTechs and that acceptance by consumers is required in order for open banking to reach its full potential.