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February 8, 2021  •  Issue 21:02:01


         Europe's open banking approaches U.S. shores




                                                               "We hope that having this fabric of so many different com-
                                                               panies, [including] large banks, small banks and credit
                                                               unions, participate in the ecosystem that the mosaic will
                                                               make our banking and payment systems resilient and truly
                                                               unique across the globe," Gordon said.

                                                               Fellow MPC panelist Lou Anne Alexander, chief product
                                                               officer at Early Warning Services LLC, agreed with Gordon
                                                               that U.S. adoption of P2P and faster payments, while slow,
                                                               has the potential to bring lasting benefits to banks and their
                                                               B2B and B2C customers. She also observed that during the
                                                               pandemic, first-time digital bankers were surprised by the
                                                               ease and elegance of digital banking.

        By Dale S. Laszig                                      "We've seen this  drastic acceleration of  customers saying
                                                               that they have changed their banking habits," Alexander
        DSL Direct LLC                                         said. "Many bank branches were closed; they couldn't bank
                                                               in the same way. Customers who never relied on online or
                 ince its inception, the payments journey has been   mobile banking or used remote deposit capture, are liking
                 marked by technology migrations flowing back   those channels and saying this is how I will bank in the
                 and forth across geographic regions.  As early   future."
        S deployers of EMV cards, Europeans modeled
        the way for adoption of highly secure chip-and-PIN and  Open possibility
        contactless digital payments well before the United States
        began migrating from mag stripe to EMV and contactless   Jeremy Nicholds, chief executive officer at London-based
        payment schemes. Europe's example helped U.S. payments   Judopay, agreed that people who rushed to digital bank-
        industry stakeholders avoid pitfalls in EMV migration and   ing out of necessity during the COVID pandemic quickly
        hasten their participation in an increasingly global, interop-  recognized its benefits. "More businesses are interested in
        erable commerce ecosystem.                             going digital, and consumers are trusting these solutions
                                                               more," he said. "You have the stage set for creating consum-
        As attention turns to making payments more agile, trans-  er-focused solutions and enhancing what's already there."
        parent and frictionless, U.S. financial institutions are once
        again taking a cue from European counterparts as they   Nicholds described Judopay as a tech company and digital
        navigate changing regulatory currents. This article shares   commerce enabler that helps clients have a better experi-
        insights from industry leaders on how banking trends that
        originated in Europe may impact U.S. financial services
        and possibly challenge deeply held assumptions about
        currencies and banking.
                                                                 Contributed articles inside by:
        Global banking's mosaic

        In August 2020, Peter Gordon, head of enterprise money   Marc Beauchamp ..................................................................................25
        movement at U.S. Bank, led a Zelle workshop at the MPC   Simon Fairbairn .....................................................................................27
        Digital Commerce conference. As he introduced Zelle, he
        characterized the growing network of bank and credit     TOC on page 3
        unions as a commercially driven approach to peer-to-peer
        payments (P2P), bill payments and bank-to-bank accounts.

                                                                                      Continued on page 22
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