Slashdot Mirror
How an Open Standard API Could Revolutionize Banking
An anonymous reader writes: Open bank data will give us the freedom to access all banks in real time and from a single view, automatically calculating the best deals in complete transparency, which will be a significant step forward for social good and give people more control over their finances. Meanwhile, financial tech incubators, accelerators, and startups are creating a more experienced talent pool of developers ready to act upon these newly available assets. From the article: "The United Kingdom government has commissioned a study of the feasibility of UK banks giving customers the ability to share their transactional data with third parties via an open standard API. First mentioned alongside the autumn statement back in December, the chancellor has now outlined plans for a mandatory open banking API standard during the recent budget in March."
Actually the UK government has forced banks to do things for the good of the customer many times.
A similar example would be the "faster payments" system. It used to take about three days to make transfers between accounts, the government (well, regulator, but same thing really) told all of the banks in the UK to sort it out.We can now transfer money between accounts in less than 90mins, typically it's moved as fast as you can logon to another bank and check to see if it's there.
Other examples include making it easier to move accounts by moving DirectDebits (a system to allow bills to be paid directly electronically from bank accounts, without cheques) between different banks, which never used to be possible.