Open Banking

Edited by Linda Jeng

Defines and explore 'open banking' as well as the concepts of 'open finance' and 'open data'
Examines how customer financial data is collected and used by fintech firms
Analyses current data and consumer protections that apply to U.S. fintech services and puts forward policy proposals for addressing key gaps in the U.S. legal and regulatory framework for protecting customers
Surveys how a number of key jurisdictions (EU, UK, India, Singapore, and Australia) are implementing open banking

Open Banking

Edited by Linda Jeng

Description

Open banking is a silent revolution transforming the banking industry. It is the manifestation of the revolution of consumer technology in banking and will dramatically change not only how we bank, but also the world of finance and how we interact with it. Since the United Kingdom along with the rest of the European Union adopted rules requiring banks to share customer data to improve competition in the banking sector, a wave of countries from Asia to Africa to the Americas have adopted various forms of their own open banking regimes. Among Basel Committee jurisdictions, at least fifteen jurisdictions have some form of open banking, and this number does not even include the many jurisdictions outside the Basel Committee membership with open banking activities. Although U.S. banks and market participants have been sharing customer-permissioned data for the past twenty years and there have been recent policy discussions, such as the Obama administration's failed Consumer Data Privacy Bill and the Data Aggregation Principles of the Consumer Financial Protection Bureau, open banking is still a little-known concept among consumers and policymakers in the States. This book defines the concept of 'open banking' and explores key legal, policy, and economic questions raised by open banking.

Open Banking

Edited by Linda Jeng

Foreword by Chris Brummer
Introduction by Linda Jeng

Chapter 1: Open Banking Ecosystem and Infrastructure: Banking on Openness by Andres Wolberg-Stok

Chapter 2: Defining Data Rights and the Role of the Individual by Kaitlin Asrow

Chapter 3: Customer Protection and the Liability Conundrum in an Open Finance Ecosystem by Steven Boms and Sam Taussig

Chapter 4: Artificial Intelligence and Machine Learning: The Opportunities and Challenges of Using Big Data by Matthew Adam Bruckner

Chapter 5: Data Access Technology Standards: A History of Open Banking Data Access by Don Cardinal and Nick Thomas

Chapter 6: Taking Your Data with You: Singapore's Approach to Data Portability by Zee Kin Yeong and David Roi Hardoon

Chapter 7: Open Banking and the Economics of Data by Yan Carrière-Swallow and Vikram Haksar

Chapter 8: Open Banking, Open Data, and Open Finance: Lessons from the European Union by Douglas W. Arner, Ross P. Buckley and Dirk A. Zetzsche

Chapter 9: United Kingdom: The Butterfly Effect by Gavin Littlejohn, Ghela Boskovich and Richard Prior

Chapter 10: The Australian Consumer Data Right: The Promise of Open Data by Julie McKay and Jamie Leach

Chapter 11: India's Approach to Open Banking: Some Implications for Financial Inclusion by Yan Carrière-Swallow, Vikram Haksar and Manasa Patnam

Chapter 12: Digital Identity: Exploring a Consumer-centric Identity for Open Banking by Greg Kidd

Chapter 13: Decentralized Finance: The Future of Crypto and Open Finance? By Nic Carter

Chapter 14: From Open Banking to Open Data and Beyond: Competition and the Future of Banking by Brad Carr

Open Banking

Edited by Linda Jeng

Author Information

Linda Jeng is a Visiting Scholar on Financial Technology and Adjunct Professor of Law at Georgetown University Law Center's Institute of International Economic Law. Her research interests include open banking, data rights, digital currencies and blockchain. She is also leading policy, regulatory and product strategy at the fintech startup Transparent Systems. Previously, she was with the Fed and had chaired the Basel Committee's working group on open banking and APIs. She has spent most of her career working on financial stability and Too-Big-To-Fail regulatory reform, including at the Financial Stability Board in Basel, Switzerland, the U.S. Senate during the passage of the Dodd-Frank Act, and the U.S. Treasury Department during the international implementation of G20-led reforms. Prof. Jeng has worked at the Securities & Exchange Commission, the Office of the Comptroller of the Currency, and a global bank in Paris. She has a J.D. from Columbia Law School, a Master of Advanced Studies from Université de Toulouse, France, and a B.A. from Duke University.

Open Banking

Edited by Linda Jeng

Reviews and Awards

"Over the past three years we have built a world-leading open banking infrastructure in the UK. With morethan four million consumers and businesses actively using open banking enabled products, over 300regulated companies operating in this space and another 450 looking to enter the market, momentum ison our side and it's a very exciting time to join our thriving open banking ecosystem." -- Charlotte Crosswell, Chair and Trustee, United Kingdom's Open BankingImplementation Entity

"The rapidly developing world of open banking needs the combination of academic, technological and practical thought which is so clearly the focus of this leading work. I am very much looking forward to reading this book, and the discussion and further work which it will certainly inspire." -- Scott Farrell, chair of the Australian Government's review into Open Banking in Australia

"Linda Jeng is a first-rate mind, and someone who has been a key architect of current analysis of the global financial system. 'Open Banking' is a timely addition to the current deliberations in both the public and private sector. As we look to building the next generations of finance using Artificial Intelligence, Digital Assets and other new technologies, this work is a welcome addition to critical thinking on the subject." -- Sultan Meghji, Co-founder and former Chief Executive Officer of Neocova

"This book assembles an all-star cast of experts on financial technology who bring you to the front lines of policy debate. The project delivers insights into a complex web of questions that all arise from a simple one: Who owns your financial data?" -- Victoria Guida, POLITICO

"In the short period of time since the Basel Committee published its 2019 report on Open Banking -- an effort led by Linda Jeng, open banking has continued to rapidly evolve and expand, taking on even greater importance on a global scale. From data privacy, data protection, and data portability to fraud, economics, antitrust/competition and AI/ML, open banking is a complex, multifaceted topic. It is also an international subject with different jurisdictional perspectives. This volume compiles contributions on all of these topics from experts in their respective fields. It is an invaluable resource and guide for practitioners, regulators, market participants and the many other stakeholders having an interest in open banking." -- Bill Coen, Former Secretary General, Basel Committee on Banking Supervision

"Open Banking takes the reader on a journey through the complex policy, economic, legal, regulatory, and ethical questions that open banking raises. Drawing on the world's leading experts, the book is a first of its kind in describing and reviewing how countries around the world are answering the questions that open banking raises. It is an indispensable guide for all those that want to understand and study open banking, that are called on to develop policy and regulation on open banking questions and for professionals and companies that engage in open banking and finance, be it as a data source or as a data user." -- Peter Kerstens, European Commission