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One in four Americans with an online bank account has given away their online banking username and password to one or more fintechs via Plaid. The process is absolutely frictionless. They entering their (say) Chase creds into a screen without even realizing that the screen does not belong to Chase website or app. Since all this happens without Open Banking, what's the whole point of Open Banking? 

Notwithstanding that, I'm sure banks will be more than happy to cede control of data to customers if regulators will hold customers - not banks - responsible for all frauds, thefts and losses arising out of breaches and unauthorized uses of that data.

Saw this tweet on how Visa has announced an increase in CNP interchange rates. It's US-centric but I was surprised to find some tweeples saying that even PayPal and SQUARE have failed to make a dent on Visa / MasterCard when it comes to online / CNP payments.

Great feature, no doubt, but I'm curious how it works. If the expense is made with credit card, how can it be traced back to a Tide transaction? Multiple receipts for multiple payments made with the same credit card can be traced back to the credit card payment entry on Tide but how will a single receipt be traceable?

"payments system set up within days rather than weeks or months". Merchants still choose BarclayCard over PayPal? 

LOL it's easier to just hand over username and password of online banking accounts to the Mints and the Plaids of the world instead of waiting for Open Banking apps to see the light of the day!

PFM and Bank Account-linked A2A Payments have been around for over a decade since the days of Mint, myBank et al. They used screen scraping and took over online banking creds of users. Neither consumers nor banks gave a damn about the security risk involved in the process. Apparently, one in four Americans has shared their banking creds with some fintech or the other via Plaid.

When the two primary actors are so blase about security, the API-based "secure access" premised by Open Banking risks becoming a damp squib. To hope to achieve any degree of adoption, new age Open Banking fintech apps need to be 10X better than the incumbent PFM and A2A apps that have been working quite well without Open Banking. And that's not so easy, especially in PFM, where there's no great evidence that the mainstream market is even so keen on the product category itself.

Maybe the "Open Banking Coin" I postulated in Open Banking Needs A Blockchain Boost is the one way to achieve the required 10X multiplier.

Yeah sure, I've seen several cans being kicked down the road e.g. cash will be dead, fintechs will kill banks, mobile wallets will kill plastic, branches will be dead, and so on. What's one more?   

Meanwhile, these just out:

1.

"One million customers are using Open Banking, ...." ~ https://www.telegraph.co.uk/technology/2020/01/25/britains-financial-giants-scuppered-digital-banking-revolution/ .

Even the Telegraph is talking about Open Banking as a product. Can we conclude that even a reputed media outlet doesn't know what Open Banking is, eh?  

2.

"“They’re idiots, they’re really naive,” is how Stevie Graham, the co-founder of fintech Teller, once described Open Banking Limited, the body charged with delivering open banking in the U.K." ~ https://techcrunch.com/2020/01/27/teller/ .

A bit harsh but jells with what I said about Open Banking proponents misreading consumer and bank behavior.

MINT, Perfios et al have been providing PFM / MoMMA functionality for nearly a decade without Open Banking. 

myBank, PayM, Zelle, Venmo, PayTM, AliPay et al have provided or are still providing bank-account linked payments in all the hot markets for over 5 years without Open Banking. 

Customers don't seem to care about whether it's safe to handover their online banking creds to these companies or whether these apps use screen-scraping or whatever technology to access their banking information. One in four Americans has shared their banking creds with master screen scraper Plaid.

Banks also don't seem to care about this, going by the fact that they could have but haven't shut down these apps which takeover online banking creds or carry out  screen scraping since the times of MINT. If banks only blockade progress as you claim, they would have easily been able to justify their decision to block access to these apps long ago.

Consumers seem to already have what they want. Banks also seem to support the apps that give consumers what they want.

This only leaves Open Banking proponents and Open Banking-based fintechs out in the cold. IMO, drunk on the Kool-Aid of API-based access to banking information, they completely misread the behavior of consumers and banks, who are the two primary actors in this realm. They're now trying lamely to blame banks for the lackluster response to Open Banking-based apps, when the truth is that these apps are not 10X better than the incumbent PFM and A2A payment apps that work without Open Banking, and will not be able to unseat them. Lack of support from banks is just a smokescreen for their complete misreading of the market. 

People have always wanted transportation, to send money, etc. They were doing it thru' horse buggy, checks, etc. When a new product came up that achieved the same objective but 10X better than the incumbent product, it has managed to gather traction, ergo mainstream adoption of automobiles, SWIFT, etc., happened. Likewise, when the new product doing the old thing was not 10X better than the incumbent product, it has failed to gain traction e.g. mobile wallet has not killed plastic credit card; ebook has not killed printed book.

Not let's take Open Banking. New products to do same old thing are not 10X better. Re. new products to do new things using data, it's only your hypothesis that people want them. I still see no proof.

OTOH, I've seen some evidence that customers DON'T want FIs to use their data. More at Banks Will Know Chipotle Is Going Bankrupt Before Chipotle. 

As I highlighted in Open Banking Needs A Blockchain Boost, the founding premise of Open Banking is questionable. I'm tempted to believe that's the reason for the lukewarm reception received by Open Banking.

But I'll stand corrected if there's any evidence to show that customers wanted truly “open” products and services that allow them to take control and make sound decisions using their own data.