Canada’s Open Banking Journey: Interview with BBVA’s Carmela Gómez Castelao, Head of Global Open Banking Program & José Luis Navarro Llorens, Global Open Banking Strategy

NCFA Canada
  1. Test thoroughly all cases and not only the happy path ones. Often in the test periods there are restrictions on customers or allowable transaction amounts that won’t allow all issues to appear until going fully in production.
  2. Integration between banks and its partners needs to be technically light and easy enough to be executed without much technical background. Support from the bank is a must to ensure the best user experience when integrating APIs.
  • To have buy-in from financial and non financial institutions.
  • Create an attractive environment for both providers and receivers of Open Banking.
  • Identification of the customers, which in most cases won´t be bank customers but third party users. PEPs (Politically Exposed Persons), blacklists, and fraud are potential risks as APIs require online checks — Strong Customer Authentication (SCA) required.
  • Due Diligence and monitoring process needed to watch and verify that the APIs are being used correctly by the third parties, as the bank has ultimate liability of the offerings.

Monetization of APIs is required to encourage banks and TPPs to invest in Open Banking. Regulated APIs don’t help differentiation and are difficult to monetize

Monetization is key for banks to invest in Open Banking. Banks cannot monetize regulatory APIs easily. However banks can monetize non-regulatory APIs (although not always directly) depending on the third party and the agreement. Monetization can be direct revenue (pay per call, fees per subscription or platform use, and integration fees) or indirect revenue (data acquisition, cross-sell, marketing or underlying service from the bank). In some cases and for large customer bases, the third party monetizes the use of APIs through models such as fee per customer acquired by the bank or revenue sharing.

Links you may be interested in:

NCFA Canada

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Fluent in Fintech-Bank Partnerships | Advisor | Ambassador| Audiobookaholic https://mahisall.me

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Mahi Sall

Mahi Sall

Fluent in Fintech-Bank Partnerships | Advisor | Ambassador| Audiobookaholic https://mahisall.me