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UK open banking efforts provide case study in risks, rewards tied to digital transformation

A man is seen withdrawing cash from HSBC Bank on October 28, 2020 in Stoke, England. Open banking is gaining traction in the United Kingdom, inspiring new tools to address fraud risk. (Photo by Nathan Stirk/Getty Images) A quasi-governmental entity in the United Kingdom is rolling out a new tool designed to boost fraud protections among open banking partners, offering an interesting lesson in risk management amid digital transformation. The Open Banking Implementation Entity – a non-profit created by British authorities and overseen by nine of the largest UK banks – was set up in 2016 to standardize and share customer banking information with a wider range of financial institutions, in part through an application programming interface that allows third party financial providers to access the data with permission.

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