Mr. Open Banking

The View From the Top

Jul 19, 2023

Business leader Paul LaRusso discusses the history of open banking, benefits of CFPB regulations, lessons from the UK, why big banks need to adapt, and the importance of open banking being a two-way street. He highlights the evolution of open banking in the US, the role of smartphone apps, challenges in data protection, and the empowering mission of Akoya in giving consumers control over their financial information.

40:53

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Episode guests

Paul LaRusso

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Quick takeaways

Open banking in the US has evolved in a market-driven manner without strict regulations, contrasting with Europe and the UK.

Acoia, led by Paul LaRusso, prioritizes transparency, security, and consumer control in data sharing to create a sustainable financial ecosystem.

Deep dives

The Origins of Open Banking

Open banking emerged as a response to the great financial crisis of 2008. Europe's PSD2 regulation and the UK's CMA order aimed to increase competition and prevent the dominance of big banks. While Europe and the UK enforced regulated open banking, the US witnessed significant open banking adoption without strict regulations, with major banks like JP Morgan Chase moving towards open banking even before the crisis.

Introduction

3min

Transition from JP Morgan Chase to Open Banking

3min

Evolution of Financial Apps and the Shift Towards Partnerships

4min

Evolution of Open Banking in the U.S.

9min

Empowering Consumers through Acoia in Open Banking

18min

Insights on Open Banking for Top Banks and Customer Data Sharing

4min

Open banking is often cast as an antidote to the dominance of big banks. Given that its origins stem from the Great Financial Crisis of 2008, this perspective is not terribly surprising. But is this characterisation a fair one? Does open banking have to be a threat to big banks, or can it be turned into an opportunity? To answer these questions and more, we turn to Paul LaRusso. Paul is a business leader with over 20 years of experience in mobile financial services and technology. Paul is the CEO of Akoya, a bank-sanctioned data access network that is leading the way in the US open finance sector. Prior to joining Akoya, Paul served as the Head of Open Banking and Connected Banking at JP Morgan Chase, where he held technology leadership positions for almost 15 years. Today as head of Akoya, Paul aims to transform the way people share their data, making it more secure, private, reliable, and transparent. In this episode, Eyal and Paul unpack the history of open banking and the evolution in the market-driven approach that Paul has had the benefit of seeing up close.

Specifically they discuss: