BUSINESS AND TRAINING
on-the-spot promotions to consumers, based on where they are
shopping and what they are buying. Users will have a tailor-made
world of offers at their fingertips. Users will retain the ability
to grant sharing permissions, equipping them with control of
their own data and ensuring they aren’t targeted by unwanted
campaigns. However, the sharing of their data opens up a world
of possibilities. closely monitored to avoid a mass dissemination of data. Once a
consumer has granted permission, there will need to be a process
that allows the consumer to revoke this, should they wish to. The
consumer needs to retain the ability to know where their data is at
any given time, especially with the imposed requirements of general
data protection regulation (GDPR) and the Protection of Personal
Information (PoPI) Act.
It also gives an opportunity for the unbanked to do away with carrying
cash and access credit. Leveraging a payment solution that is either
inexpensive or free, if supported by advertising revenue, the unbanked
will be able to build a payment record and credit history, which opens
the door to credit opportunities. PoPI is a South African regulation, which will naturally apply to South
African businesses and individuals. GDPR is, however, a European
regulation. Despite this, South African businesses should not assume
that the GDPR will not affect them.
CHALLENGES
Despite the sweep of open banking, different banks across
various countries are all at different stages of PSD2 adoption.
Banks are going to need to stay close to the process to retain
their relevance and ensure they aren’t excluded from the
payments system altogether.
With regard to data protection and security, the regulation has been
careful to state that consumers must grant permissions for data
sharing. However, this is a process that will need to be cleverly and
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Any local business who has operations in Europe, who deals with
European suppliers, or who has so much as a single European
customer, needs to comply with GDPR. Financial institutions will
need to keep mindful of these regulations when embarking on any
new initiative.
There is no doubt that the banking world will see a tremendous and
exciting shift, and there is much to be gained from open banking.
Banks, emerging AISPs, and PISPs will need to ensure they engage
with partners who are at the forefront of banking technology to forge
ahead and retain their momentum once there. PA
March 2019 Volume 25 I Number 1