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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