Open Banking: A Perfect Storm for Security and Privacy?
SecurityWeek
SecurityWeek
Trevor Salter spoke to SecurityWeek about open banking, an emerging market sector in the U.S. described as a “perfect storm” for cybersecurity issues as small startups with financial acumen but little or no security expertise or resources are rushing new products to market.
“We’ve seen broad progress on technical integration protocols between financial institutions, aggregators, and product providers,” Trevor said. “Similarly, we’ve seen general alignment on how to make end users aware of how their data will be processed. But in the absence of a government or industry mandate, data can’t flow until financial institutions and aggregators sign an agreement.”
As a result, open banking in the U.S. remains a piecemeal effort while all concerned negotiate bilateral agreements to unlock users’ data. “Many of the largest financial institutions, aggregators, and product providers have completed those agreements,” Trevor added, “but there will be a very long tail of relatively smaller financial institutions, aggregators, and product providers before we reach the end of the journey toward open banking.”
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