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@MelvinHaskins:

Simplicity is said to be the hallmark of iPhone, so the mega success of iPhone may not negate your view that people don't need a sophisticated phone!

OTOH, if people only buy what they need rather than what they want, so many industries / companies would perish and GDP of the world would crash. So, even assuming for the moment that people will aspire for - though not need - sophisticated products including banks, the bigger question is, what will they get from fintechs. Take a product like credit card. More than 5 years since the start of fintech hype, how many fintechs offer credit cards? For all the hype surrounding online P2P lending, most P2P loans are issued by traditional banks. There are nonbank mortgage providers like Quicken but, despite the fact that they've been around for ages, they haven't disrupted the banking industry.

A few years ago, finsurgents were talking about breaking banks. That didn't work. Then they pivoted their model and started talking about providing technology, without which they claimed banks will collapse. That too didn't work. Then they changed their tune to partnering with banks. The jury's out on whether that will work.

I haven't used ATMs in Switzerland for a while but, when I last used them, different banks supported different feature sets on their ATM estate. I remember that only UBS ATMs supported cross-border remittance. I wonder how a unified interface for ATMs of all banks will support differentiation by different bank's ATMs. The issue is many more times relevant in India where ATMs have been supporting a very wide of functionality including bill payments, temple donations, train and event ticketing, and so on, for 15+ years. While security is important, I hope they don't throw the baby out with the bathwater by sacrificing bank-specific differentiaton for the sake of security. The last time they did it for online payments by mandating 2FA, it led to so much friction and caused so many failed payments that many people - including me - who were using credit cards for online shopping earlier switched to Cash on Delivery.

Yet another post that confuses a company for an industry. Yet another post that banks will ignore precisely for that reason. After trying it for 5+ years and finding that it didn't work, wannabe disruptors have themselves stopped chanting the disruption mantra and have now started chanting the bank-fintech partnership mantra. But, alas, that won't stop posts like this.

I'm not alone.

Once they get over their security concerns, customers will get the cloud cost shock and realize that cost saves by moving to the cloud are illusory. https://twitter.com/s_ketharaman/status/856847998118187009

I hope this is one of those breakthrough ideas that sounds harebrained at first. On a side note, whatever happened to MasterCard inControl, which was supposed to do something like this but for many more merchant categories? Seven years ago, I began my blogging on Finextra with the following post on credit cards that stop you from spending:

Credit Cards Come A Full Circle

@ArturoGonzálezMacDowell:

Very well then, fintech should setup "mutual certificate authentication" for banks, allow banks to screen scrape fintech apps, show banks how easy it is to identify banks accessing each screen-scraped session. Since fintech prides itself on agility vis-a-vis banks, fintech should be able to do all this in no time, thereby not threatening PSD2 timescales.

Let fintech allow banks to screen scrape fintech apps. Then banks won't protest fintech's demand to screen scrape banking apps. On a side note, who is responsible for leakage / loss of customer data during a screen scraped session used by a third party (vs. customer)? In fact, is it even technologically possible to determine whether a screen-scraped session is used by first party (i.e. customer) or third party (i.e. fintech / bank)?

@BimalMelwani:

IMO, permission(s) is / are required for a bank to make a CLO to a customer is irrelevant in the current context. My point is "banking data" - taken as a monolithic entity - belongs jointly to customer and bank. Both parties have to agree to share that data with third parties. Customer's approval alone does not suffice.

@BimalMelwani:

Notice I've said the data is proprietary to both consumer and service provider. I don't agree that consumers are sole owners of transaction data, whether with Amazon or Vodafone or Banks. Data belongs to both parties.

To take an example, consumer gets a CLO on their NetBanking portal. This data / info / whatev is generated by Bank. While it's produced by using consumer transaction history as raw material, the finished good itself is owned by Bank - just as a limestone quarry does not own the cement produced from the limestone supplied by it to the cement manufacturer. Scraping will allow fintech to gain access to what's a form of trade secret. Hence fintechs can't demand access via screen scraping.