What does the CMA's Open Banking report mean for alternative finance? Conrad Ford editorial
11 August 2016
Funding Options founder and CEO Conrad Ford explores the wider implications of a new report by the CMA. After two years of investigating, the CMA has mandated that Open Banking must be adopted by 2018, which should have a huge impact on the financial services sector.
Conrad describes it as a “Cambrian Explosion”:
“Just as the availability of oxygen led to an explosion of new life forms, rich data from Open Banking APIs will add rocket fuel to innovative fintech firms like alternative finance providers.”
“With Open Banking, expect to see peer-to-peer lenders finally compete on equal terms against the dominant banks. Some alternative lenders may go further and utilise read-write access to Open Banking data, giving them the ability not just to view bank account payments, but also to initiate them.”
“In an Open Banking world, SMEs won’t even need to have both online banking and online accounting software – a veritable Battle Royale now beckons for control of business banking.”
To read Conrad's full City A.M. editorial, click on the logo below: