BBVA API Market
Open banking is a different twist to everything that has happened since institutionalized banking was invented centuries ago. The new European regulations PSD2 and XS2A give top priority to the portability and security of bank customer data. This change brings about new possibilities for creating a consumer-centric ecosystem. These are some examples of how open banking improves the customer experience.
Open banking is transforming the way we understand finance. This revolution is opening the door to a world of collaboration and opportunities, generating value for customers and new business models. Many banks and financial institutions have been offering a series of applications that allow us to analyze our savings, invest, apply for loans or manage our taxes. Whether we’re individuals or businesses, Open Banking already lets us to do more.
In the specific case of BBVA, its commitment to open banking makes it a pioneer in the industry and it already has 10 APIs available in Spain, as well as another six in beta in Mexico and USA. “Open banking is going to improve people’s lives. Their digital lives as well as those that are not so digital,” Ricardo Segoviano, Head of BBVA Business APIs, recently explained at the Open Banking conferences in Bilbao.
Ricardo Segoviano, Head of BBVA API_Market, also explained the bank’s long-term investment in open banking at the Open Expo congress. He said that the most important step taken by BBVA toward open banking was to create its Open APIs platform, which was launched commercially in May 2017; he then summarized the lessons in these six conclusions.
BBVA’s work on open banking has been recently recognized by the trade publication “Retail Banker International,” part of the British platform Verdict, which chose the bank for the award of Best Open Banking in the world on the strength of the BBVA API_Market, a business unit that was considered a “pioneer” in the sector. We took the award ahead of HSBC and Lloyds, the other two shortlisted banks.
As for APIs, commercial strategies are the main focus and will keep playing the most important role in the short term. Even though most financial firms are adapting to or embranced API-based open banking systems, commercial APIs are still needed to operate with entities outside the regulatory framework that demands the implementation of open banking APIs.
In any case, the open banking revolution has only just begun. The arrival of the PSD2 payment directive has laid the foundations in European territory, and it also highlights the United Kingdom’s drive, which has made it one of the strongest promoters of open banking worldwide. Outside Europe, you can find remarkable initiatives in 8 countries; see details here.
Open banking has changed the financial paradigm as we have known it so far. The widespread use of new digital platforms, connected devices and technology consumers has led to a boom in business opportunities for every company, many of which are already leveraging their benefits as much as possible.
The digital transformation has not been fully implemented in the automotive sector yet, at least not as quickly as in other distribution sectors. APIs can be this sector's best ally by speeding up its digitization, especially in those areas involving the purchasing process.
In just one year, the second European Payment Services Directive—or PSD2 as it is better known—has created a new scenario combining innovation and security, in which banks have been progressively opening up access to their infrastructure to third parties.