Hey #VibeCommunity, it’s good to catch up! I hope you’re keeping well. If you’ve been vibing with us for a while, you probably already know that open banking facilitates faster, fuss-free payments, from bank to bank. It really is the future! So what’s standing in the way of those of us who are on board already, to bring it into the present?
Right now, the truth is, limits on bank transactions are getting in the way of open banking payments. The restrictions that your bank implements to safeguard against fraud are currently being applied to open banking payments, in spite of the risks being completely different.
For a start, when payments are made using open banking, strong payment authentication is used. If you use VibePay to make transactions, you’ll be familiar with this. It means that you’re required to authorise the payment with your bank, before you can vibe somebody. This requires identification, using facial recognition, a fingerprint, or a password. Not even VibePay gets access to your verification credentials, only you and your bank. Next up: Open banking does not share the numbers on your card, or any sensitive details. In 2020, fraudulent transactions made with stolen debit/credit card details amounted to a staggering £574.2m. With open banking, these risks are eliminated. There’s more, too. Payment instructions are pre-populated in open banking. You know when you’re bank transferring a pal, and you have to type their sort code and account number? Yeah, I hate that too. Open banking platforms like VibePay do away with this. This saves you a lot of hassle, but might just save you from getting scammed, or misdirecting a payment too. Because account details are already securely held by your open banking platform, you’ll never be tricked into sending money to anyone other than your intended recipient, and you won’t run the risk of making a typo and sending your dough to the wrong account. No human error, no falling foul to fraudsters. Winning. All of these features define open banking, and set it apart from traditional platforms. It’s safe, secure and sensible, and it’s time that was recognised.
At Vibe, we endorse the recommendations made here by the Open Finance Association, and wanted to share them with you. These are the changes that we want to see, and which will pave the way for a future in which open banking - safe, quick and without fuss - is the norm. If you’re with us already, you’re ahead of the game, and once the rest of the world catches up with us, there’ll be no stopping us.