HDIW | Open Banking and Open Finance - Giuseppe Bianco

Giuseppe Bianco, policy analyst at the Organisation for Economic Co-operation and Development (OECD), discusses the concepts of open banking and open finance. Open banking involves banks sharing customer-permitted data with third-party providers to offer more services, while open finance expands this to include data from various financial activities such as credit, savings, insurance, pensions, and investments. The OECD has been working on these areas to empower customers, promote innovation, and encourage competition.

Despite the benefits, challenges include data usage and management, protecting consumer interests, ensuring operational risk management, and maintaining fair competition. Data privacy is a major concern, especially with sensitive data being shared. Trust is crucial, requiring clear liability rules and cooperation between data protection, financial, and competition authorities. Implementing these frameworks also involves ensuring fair incentives for incumbents and achieving interoperability of data systems. Cross-sectoral regulatory cooperation is essential for success, with the OECD being an appropriate forum for facilitating cooperation amongst relevant regulatory authorities.

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