European climate warming up and nurturing open banking progress

European climate warming up and nurturing open banking progress

Yolt, a smart money management app owned by Dutch magnate ING, has paired up with British Monzo via an API. This move shows open banking principles being embraced across Europe by incumbents, startups and users: Yolt and Monzo users have made ‘over 1500 requests’ for their integration.

Monzo is the 30th bank, and second mobile-only bank, to connect with Yolt. Similar UK challenger bank Starling integrated with Yolt in 2017 and Lloyds Bank earlier this year. Customers can share account information between apps to better understand their spending and finances.

What are other clever fintechs doing to connect us?

Denizen, backed by BBVA, has launched a borderless bank account to better facilitate global commerce for global citizens. The Denizen product allows customers to avoid international transfer fees and does away with currency exchange fees, reported Finextra. The company is entering space dominated by non-bank money transfer programs like Revolut and TransferWise who offer similar advantages.

Throughout the year, the service may expand to as many as ten top European Union countries as well as the United Kingdom. It is currently available in Spain and the United States.

And the competitors?

Just last week, Revolut launched its ‘disposable’ virtual card. The feature allows customers to generate one-time use card details to prevent fraud on less trustworthy websites. The cards can’t be used for recurring payments but they do make the online shopping experience a whole lot safer.

Open Banking can boost consumer choice and freedom. Partnerships across the channel, such as that between Yolt from ING and Monzo, show open banking at its best. Actions from Denizen and Revolut are making international payments easier and cheaper. This is all in response to consumer demand for more freedom and choice over their money. Parallel, global commerce more than ever requires the free movement of money.

By Grace Appleford, Research Analyst.

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