Gunnar Berger: “Nordea has a long-standing reputation as one of the most technologically progressive banks. We’re already investing in transforming our core banking systems through digitisation and new technologies – and we have a strong reputation for driving technological progress."
As part of their Open Banking Report 2018, ‘The Paypers’ interviewed Gunnar Berger, Nordea’s Head of Open Banking. This article was independently edited by The Paypers and is reprinted here. You can download ‘The Paypers’ Open Banking Report 2018 by clicking here.
What are the solutions already launched on the Open Banking Developer Portal? Going forward, what are the next solutions and partnerships to empower the platform?
We have launched the sandbox, which now has over 2,200 registered users, with dynamic features, high-quality documentation and support resources. We have published XS2A APIs as open APIs and are still in a pilot mode. We gather feedback and develop the service further until we are sure it functions in a satisfactory manner for customers, third parties, and us.
In addition, we are working on exposing a few premium APIs to selected partners. With compliance APIs we refer to Account Information and Payment Initiation Services, which we are exposing in order to comply with PSD2. Premium APIs are exposed to selected third parties based on agreements. New solutions will cover many product areas across Nordea. As it looks now the premium APIs for corporates will hit the market before the compliance APIs.
It is extremely important for us to have a large network of developers and fintechs around us. The developer community with over 2,200 sandbox users helps us to iteratively improve our services; it also ensures that we can enter into partnerships creating value for our clients, third parties and us.
What are the benefits of Open Banking for corporates? What are Nordea’s (current and future) initiatives to help the business banking customer segment?
Open Banking is about improving digital customer-centric offerings by opening up currently un-available data-streams on a wide range of business areas such as banking, investments, lending, trade-finance, insurance, peer-benchmarking, bank account management, embedded ERP-data, KPI-dashboards, cash and treasury functionality etc.
Treasurers can move away from batch-oriented solutions to real-time information allowing corporates to develop processes that are more efficient, seamless integration and data-driven decision-making. One example is account aggregation for corporates. At its best, it can solve the treasurer’s need to get consolidated real-time data on their liquidity situation in a multi-bank environment. It remains to be seen how forthcoming banks will be with their APIs on corporate data.
Corporates will benefit from the increased number of APIs and banks and their partners can offer customised solutions, with technology components combined in a way that partner banks, corporates or third parties find meaningful. Overall, treasurers stand to gain benefit in terms of real-time data and improved data analytics. With time, Open Banking will create new ways for banks to collaborate and be part of corporate value chains. Instead of fuelling a battle between new and old players, it aims to enable co-creation between banks with trustworthy processes and powerful service organisations and non-banks with innovative ideas and agile ways of working.
What is the role of banks in consent management, as safe keeper of personal data (beyond financial data) and money?
The customer is the owner of his own data and sharing this data should be based strictly on his consent. One of the most important aspects of PSD2 is the customer’s right to control its own data and to share parts of it with a third party.
Within the PSD2 scope, banks need to be aware of the consent model between their customer (PSU) and a third party (TPP), so that the banks have a basis on which to share the data with the TPP. Banks will provide APIs outside of the PSD2 scope, and in those APIs the requirements on consent and contract may vary. The open APIs will call on micro services that do basic stuff and the front-end in this new environment will be much more intelligent than just a presentation layer. If we do this in the right way, we can reach a state where the cost for change will be so low that customer specific development can become a reality again.
Nevertheless, the banks will always need to know that the customer willingly wants to share data/services with a third party (TPP). The client should always be made aware of for what purposes data is being used, this responsibility lies with the third party. On the other hand, the customer should also be made aware of with whom the data is being shared. This responsibility lies with the bank, the data controller.
As the consent is negotiated between the customer and the TPP, Nordea registers and presents that consent in the authentication method Nordea UI, where it is very visible and clear for the customer what he is consenting to. The customers may cancel a third party’s access to their account at any time. We offer our customers a portal that allows them to control the data they expose to third-parties and monitor which third-party apps/ services they have given consent to. Looking forward, our focus remains to provide our customers with in-demand products and services while keeping them in control of which data they wish to expose and which products they wish to use.
About Gunnar Berger
Gunnar is heading a Nordic unit responsible for ensuring PSD2 compliance and proactively embracing the opportunities for more innovative development and 3rd party collaboration based on open banking. Gunnar’s goal is to make Nordea’s Open Banking Platform the go-to hub for financial APIs in the Nordics, where customers, 3rd parties and banks can meet to exchange data and co-create more comprehensive and value-adding solutions. Gunnar has a long history working in the banking industry, especially with complex customer cases and development initiatives.
This story originally appeared in the Paypers Open Banking Report 2018 here: https://www.thepaypers.com/reports/
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