How can we fix the identity problem? Asymmetric Warfare v3 Open - - PowerPoint PPT Presentation

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How can we fix the identity problem? Asymmetric Warfare v3 Open - - PowerPoint PPT Presentation

Oct 11, 2022 618 likes •852 views

How can we fix the identity problem? Asymmetric Warfare v3 Open banking and its discontents David G.W. Birch (15Mb Ltd.) The Point (Auckland, August 2018) dave@15Mb.ltd www.15Mb.ltd @dgwbirch Please copy and distribute (last updated 16

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How can we fix the identity problem?

Open banking and its discontents

David G.W. Birch (15Mb Ltd.) The Point (Auckland, August 2018) dave@15Mb.ltd www.15Mb.ltd

v3

Asymmetric Warfare

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David G.W. Birch

author, advisor and commentator

Global top 15 favourite sources of business information (Wired Magazine); London FinTech Top 10 most influential commentators (City A.M.); Top 15 Regtech Influencer (Thomson Reuters); Top five Leader in IDentity (Rise); Top 10 Twitter account followed by innovators, alongside Bill Gates and Richard Branson (PR Daily); Top 10 most influential voices in banking (Financial Brand); Top 50 blockchain insider (Richtopia); Europe’s most influential commentator on emerging payments (Total Payments).

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Agenda

Moving to open banking

  • How did the UK become a laboratory?

Bank responses

  • Which strategies make sense for banks?

Unexpected consequences

  • Why might it all go wrong?
  • What could be done to fix it?
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Moving to Open Banking

The UK’s “Perfect Storm”

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First Storm, PSD2

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Second Storm, OBWG

The Open Banking Working Group (OBWG) working in response to the UK Treasury Open Data to create

  • A data model (so that everyone knows what "account",

"amount", "account holder" etc means);

  • An API standard (for reading consumer data);
  • A security standard;
  • A governance model;

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Third Storm, CMA

In August 2016, the Competition and Markets Authority (CMA) published the final report for its retail banking Market Investigation; It set out a package of remedies aimed at increasing innovation and improving competition, including requirement for the nine largest current account providers to make available to authorised third parties; This information must be shared through an open Application Programming Interface (API) framework; “Open Banking Implementation Entity” to develop the API Standards.

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Easy

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Open Banking means Change

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Bank Responses

Options for API-based strategies

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What Me, Worry?

By allowing customers to connect to a range of banks and service providers through a single point, Open Banking could open to the door to the ‘unbundling’ of banking. Adam Brazier, Executive Director for Financial Stability, Bank of England, in a speech to Imperial College Business School (19th April 2018)

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Dynamics

Open Banking separates the “manufacturing” and “distribution” functions A new “packaging” function will appear

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Technology

Manufacturing is about efficiency and productivity Packaging is about flexibility and safety Distribution is about security and convenience

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Bank Responses

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Packaging: UK Open Banking Platform

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(My Strategy: Digital Identity)

Source: Accenture (July 2017)

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Unexpected Consequences

What will actually happen?

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He says…

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She says…

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EU Outcome: Asymmetric Warfare

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21st Century Anti-Trust

Tired

  • Break up monopolies
  • Trust-busting
  • More competitors

Wired

  • Open up monopolies
  • APIs
  • More competition
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in the future, everyone will be famous for fifteen megabytes engage 15Mb Ltd. post 1 Armadale Road, Woking, Surrey GU21 3LB, UK call +44 1483 834631 contact dave@15Mb.ltd visit www.15Mb.ltd follow @dgwbirch comment blog.dgwbirch.com connect https://www.linkedin.com/in/dgwbirch/

  • rder amazon.co.uk “Before Babylon, Beyond Bitcoin”