Mastercard has announced its new Open Banking Solutions service consisting of a set of solutions, applications and services to support financial institutions and fintechs or third party providers (TPPs) across Europe in its evolution to Open Banking.
Open Banking Solutions is based on the findings of a study carried out by Ovum which revealed that in order to fulfill the promise of Open Banking the various market players will have to cooperate and face three main technical challenges. These challenges are to develop standardized mechanisms through which banks and TPPs interact, establish appropriate solutions to the ecosystem to minimize exposure to fraud, and create clear and consistent mechanisms for managing queries and resolving disputes.
The new Mastercard service presents four different solutions: it allows scale and speed in the connection to the market of the Open Banking functionalities of financial institutions; verifies in real time the status of registration of TPPs, to reduce exposure to fraud; centralizes consultation and resolution of disputes; and, finally, offers professional advice to help banks define and execute their Open Banking strategies.
Mastercard believes that to enable adoption to take place on a large scale, the education and consumer awareness component around the potential benefits of Open Banking will be a key component. Banks and fintech should therefore consider models that explain and help customers discover and securely and reliably access Open Banking, providing a good user experience.
Jim Wadsworth, SVP Open Banking at MasterCard, said: "With Open Banking Solutions we are able to deliver specialized consulting, state-of-the-art technology support and answers to a wide variety of challenges, bringing tranquility to end users, which in turn , will support the adoption of Open Banking. "