00:05 Hello. Hi.
00:07 My name is Gosia - a cofounder of Fena
00:09 An Open Banking powered platform
00:13 for B2B and B2C sellers.
00:19 You might ask why I want to talk
00:21 to you today, why I'm recording this video.
00:24 So I thought, as an open banking powered and
00:27 regulated payment institution, I would want to give you
00:32 a bit of a background about open banking and
00:35 explain it in a kind of simple way what
00:37 it is and how you can benefit from it.
00:41 So I thought I start from the beginning, very beginning,
00:44 and explain to you what actually open banking is.
00:49 So, in a nutshell, open banking was introduced by
00:53 a new legislation called Payment System Directive 2.
01:00 That legislation came into force from January
01:03 2018 and that legislation aimed to unify
01:09 payments across Europe and the UK.
01:12 And as a kind of result of that legislation
01:17 and the new laws around payments that were introduced
01:21 in 2018, there were two different types of services
01:26 that were introduced within the payment realm and those
01:32 are account information services and payment initiation services.
01:39 They didn't exist before and they were
01:42 brought as a part of this legislation.
01:46 In Europe, people tend to call it PSD2
01:49 or the services PSD2 services.
01:53 In the UK we tend to call it open banking.
01:58 And you might ask what actually open banking is.
02:02 A lot of people say I would rather
02:03 have a closed banking than open banking.
02:05 So it's nothing scary what it effectively is.
02:09 So let me start from the account information services
02:13 effectively is an ability for a bank account holder
02:20 to grant access to a third party provider of
02:23 those services like ourselves, to the information that are
02:28 held about the bank account by the bank.
02:33 So we can access the following information.
02:36 We can access the name on the bank account,
02:38 we can access sort and account number, the transaction
02:41 history, and in some cases, we can access additional
02:43 information like date of birth and addresses.
02:47 But that is not that common and on the payment side.
02:53 So payment initiation services effectively introduce a new
02:58 way of getting pay and pay other people.
03:01 So that sort of payment method is mostly offered to
03:07 other businesses to get paid for the goods or services.
03:12 So payment initiation effectively is an
03:15 ability for a third party provider. So a technology business
03:19 like ourselves that is regulated here
03:21 in the UK by the FCA to send information via
03:26 an API to a bank saying please send this amount
03:34 of money to this bank account with this following reference
03:37 number now and using the basically APIs that we have
03:44 and we can generate links.
03:46 That link can be clicked by a person that
03:49 wants to pay for the goods or services.
03:52 They click on this and they are taken
03:55 to our bank selection page, which they select
03:59 which bank account they want to pay with.
04:01 So we support various banks, they get a summary of
04:06 how much they're paying to what bank account they're paying,
04:09 what's the reference number for that payment, and they select
04:13 the bank they want to pay with.
04:14 So, for instance, if you're a Monzo customer, which is a
04:17 challenger bank in the UK, you can select Monzo.
04:20 And then if you're on mobile, banking, app will
04:27 open on your mobile and then you get a
04:29 screen asking, do you want to pay this amount
04:31 of money to this person or this business
04:34 Please confirm.
04:35 And once you confirm, and you can confirm in
04:38 a various way, you can confirm if your Pin,
04:40 your face, your thumb, various ways of confirming whatever
04:44 you have set up on your phone.
04:46 For example, I have a biometric confirmation using my
04:50 face, so my face gets kind and then that
04:54 payment is released then from my bank account to
04:57 the person I'm paying to, and I get a
05:01 redirect back to the confirmation of the payment.
05:05 So I get the confirmation of the payment.
05:07 It can be we provide a confirmation page, but
05:10 if you have your own confirmation page for order,
05:13 your customers can land on that page.
05:17 And that's pretty much it, really.
05:19 So there are two main in a summary.
05:24 Open Banking is an ability for a third
05:27 party provider like ourselves, so regulated businesses that
05:31 receive regulation that they receive licence to operate
05:36 as account information services provider or payment initiation
05:40 services provider to get access to the banking
05:44 APIs and perform the following services like payment initiation
05:50 or getting account information from your bank account.
05:55 And that's pretty much it.
05:56 That's a summary of what Open Banking is.
05:59 If you want to learn more about Open
06:02 banking and how it can be used for
06:04 different businesses, please follow our channel.
06:07 So this channel you're currently on, subscribe
06:09 to, it give us thumbs up.
06:11 If you have any questions, please leave
06:13 comments in the comment section below.
06:17 Or if you want to get in touch
06:19 directly with us, email firstname.lastname@example.org.
06:22 If you want to get in touch directly with me,
06:25 please email email@example.com
06:32 Have a lovely day and I see you soon.