Deutsche Bank has acquired Mumbai-based startup Quantiguous Solutions to help build an Open Banking platform connecting corporate clients to third party partners and its global transaction banking franchise. This acquisition is expected to strengthen its Global Transaction Banking franchise. The value of the acquisition was not released.
The open banking platform forms the core for developing innovative client applications and connects corporate clients, fintech firms, and partner companies to Deutsche Bank’s transaction banking platforms and services.
Open banking is a financial services term that refers to:
- The use of Open APIs that enable third party developers to build applications and services around the financial institution.
- Greater financial transparency options for account holders ranging from Open Data to private data.
- The use of open source technology to achieve the above.
Societe Generale’s Open banking initiative
Socgen is developing APIs for wholesale banking clients, creating a new website that presents a single screen interface to the information that resides in a variety of systems that previously clients had to access separately. This was created without having to change the core systems. Increasingly, data protection rules will dictate how customer information is accessed and used. At present, many TPPs access banking systems to take customer data without a clear understanding of customer consent. This will change with upcoming regulations (e.g. PSD2 and GDPR). Socgen also runs internal hackathons with the Open Bank Project.
Other banks’ Open banking initiatives
BBVA: BBVA has the best open platform strategy, according to 11:FS. BBVA has developed an API market which is a global and open APU platform consisting of various products that lets customers access financial solutions and seamlessly implement them in businesses. It also organizes BBVA open talent which is the biggest fintech competition in the world.
BNP Paribas: BNPP organizes multiple competitions and an international hackathon. It also participates in the Open Bank Project. It is an open source API that provides RESTful interface for developers to build customer facing apps without needing to code for each bank/ account differently. They are also planning to acquire some big start-ups in Germany to accelerate their Open banking strategy.
JP Morgan: JP Morgan has partnered up with fintechs — including OnDeck, Roostify, and Symphony — which were key to improving the bank’s consumer offerings. JPMorgan is making it easier for fintechs to work with the bank, including the Developer API Services store, which gives fintechs access to its APIs to build more targeted services.