What’s Happening in the World of Open Banking this Week?

Atom Bank has announced an agreement with Plaid which will see it offering payment initiation services and other open banking-enabled products to its corporate clients. It will start off by introducing a more efficient and faster loan application process. Atom Bank is also one of the few financial institutions to lend to customers via the Coronavirus Business Interruption Loan Scheme (CBILS).

Mode Global Holdings will introduce an open banking-enabled payments and loyalty solution in the second quarter of 2021. The solution will be made available to merchants in the UK to begin with before expanding into Europe. It will give retailers a more efficient, faster and cheaper way to accept payments. Payment authorisation will be through biometrics and Strong Customer Authentication (SCA). 

Sweden-based Klarna is partnering with the cryptocurrency broker Safello to bring open banking to its platform. This is Klarna’s first cryptocurrency project. Safello’s 180,000 customers will use Klarna’s solution to buy cryptocurrencies from their bank accounts. Klarna currently connects to more than 5,000 banks in 18 countries. 

The open banking fintech Bud, is working with New Zealand’s largest bank ANZ to help it automate lending. Bud will be able to breakdown a customer’s loan application in detail, analysing their income and spending to assess affordability quickly and more effectively. Bud will apply the experience it has gained in the UK to the New Zealand market. 

Yolt Technology Services (YTS) has been issued with a PSD2 licence from the FCA. Up until now it was operating under the licence of its shareholder ING. Now, with its own licence it can continue to grow its Pay Initiation Services (PIS) and Account Information Services (AIS) in the UK. YTS will also be able to offer its services to companies that do not have a PSD2 licence which will be beneficial to small businesses.