The concept of Open banking will stimulate the development of partnerships between financial market players – a member of the Board of OTP Bank
The implementation of the concept of open banking in Ukraine, as provided by the Law of Ukraine “On Payment Services”, will have a positive impact on all financial market players and the end result that the client will receive. This opinion was expressed by Oleh Klymenko, a member of the Board of OTP Bank for Retail Business Development, during a round table “What are the prospects for the law on payment services for banks and financial companies”, organized by the Financial Club on August 4.
“The Law” On Payment Services “will contribute to the evolution of the financial market. In particular, the opening of the API will stimulate the development of partnerships between market players – banks, non-bank financial institutions, fintech. And a partnership between service providers is a benefit for the consumer, because each of the partners adds its value to the final product or service that the customer receives. OTP Bank has been a partner of another large bank in terms of access to API for more than three years, and the result of such interaction is very positive,” O.Klymenko said.
He added that the Law “On Payment Services” will not significantly change the role of banks in Ukraine and the essence of their interaction with customers. “The client has a bank account, and the bank will be responsible for keeping the funds. Of course, the customer experience will partly change – for example, in the mobile app of a company you can add bank cards (what is available now), there you can view your bank accounts, statements (what is not available now). And due to the fact that payment service providers, which will be partners, will cancel the fees for transfers, payment for acquiring, etc. – the final price of financial services for the client will be cheaper, and their quality will be higher. But the overall picture will remain almost unchanged: the client will have a bank, the bank will have a client.”
On June 30 the Verkhovna Rada adopted in the second reading and as a whole the Law № 4364 “On Payment Services”. In particular, the fourth chapter of the Law determines the procedure for payment service providers to access users’ accounts (open banking). According to the website of the National Bank, the regulator “has already begun cooperation with participants in the Ukrainian payment market to develop common standards of open API – convenient, clear and acceptable to all. The National Bank expects that Open banking will start in Ukraine in 2023.”
Public Joint Stock Company OTP Bank is a subsidiary of OTP Bank, which is the largest independent Central-Eastern-European banking group. JSC OTP Bank is one of the largest domestic banks, a recognized leader in the financial sector of Ukraine. The Bank provides a full range of financial services to corporate and private customers, as well as to small and medium enterprises. The bank entered the Ukrainian market in 1998, and since then it enjoys a staunch reputation of socially responsible, reliable and stable institution providing its consumers with services of European quality standard.