Rolphcast #2: Overcome data fears to make Open Banking work

| February 6, 2019 | By

“If Open Banking is to succeed, banks need to talk about how consumers can share personal and financial data in the most secure tokenized way.” In Episode 2 of the Rolphcast, Yoyo CEO Michael Rolph takes a look at where we are with Open Banking 12 months since it was introduced…


Welcome to episode 2 of the Rolphcast.

Every other week, I tackle a subject that’s recently been in the news from the world of payment, fintech and retail. I don’t actually get to see that subject until it’s handed to me by the man behind the camera, who will remain nameless (our slightly less cool version of The Stig).

Rolphcast Episode 2: Overcome data fears to make Open Banking work

This week’s topic is…Open Banking.

It’s just over a year since Open Banking came into the daily lives of all of us who work in the world of fintech.

The CMA9, which equates to the nine largest banks within the UK, were effectively mandated to make their banking platform accessible for third party companies that had been given permission by a consumer to essentially do one of two things.

  1. If you are an AISP, Open Banking gives you the ability to see what is going in within a consumer’s bank account.
  2. If you are a PISP, third parties are able to actually effect a payment i.e. a movement of money from a consumer’s bank account

Probably one of the most visible cases of Open Banking in action comes from two banks that aren’t actually part of the CMA9 – challenger banks Starling and Monzo, whose Open Banking-esque API integrations with third parties enable in-store card transaction data to be entirely passed through to a recipient’s bank account.

In Yoyo’s case, this means retailers can send anything from an itemised digital receipt, loyalty stamps or reward points straight through to a customer’s bank app, as well as to the Yoyo app.

If you’re part of the CMA9, this is the exact type of experience and service you want to be able to offer to your customers.

Getting access to receipt-level data is fundamentally going to change the way in which banks could look at their risk models when it comes to things like lending, as an example.

One year on, what’s the problem with Open Banking?

 As consumers, we still don’t really know what Open Banking means, and there certainly hasn’t been much press around any perceived benefits. 

If anything, one of the worst things has happened, with everyone become super aware of the negative aspects around putting their data out there – and we have the likes of Facebook to thank for that.

To fix this, banks need get consumers comfortable with the concept of sharing data – particularly personal and financial data.

The reality is that there are several secure ways that consumers can share and benefit from the sharing of data.

For example, when somebody transacts via Yoyo, they’re anonymous, with no personal or financial information passed on as part of the transaction experience.

In fact, we go so far as to actually tokenize user credentials – so while retailers can segment and target groups of customer behaviours, we never reveal who the user actually is.

Fundamentally this is what Open Banking needs to get to the heart of. Banks need to talk about how their able to share personal financial information in a secure tokenized format, and showcase how Open Banking actually benefits the consumer.

So far, we haven’t seen this positive message come through.

Ultimately, Open Banking is about providing better services, experiences and products to consumers. Crucial to it’s success will be proof that when consumers enable others to know more about what’s going on their lives, it will be airtight secure and bring benefit to them in both the short and long term.

If there’s anything you think we should be discussing in future Rolphcasts, email it in to with the subject line “Rolphcast”.

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