Name: JP Morgan at FinovateFall 2023 – The future of open banking in the US
Uploaded: 2023-10-04T11:24:54.478Z
Duration: 677.6
Description: At the FinovateFall 2023 conference in New York, FinTech Futures caught up with Florencia Ardisonne, Head of Product, Customer Insights and ChaseNet Analytics at JP Morgan, to discuss the growth of open banking in the US and what the future holds for the technology.

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ENGLISH

{{00:00:05}}
This is FinTech Futures at Finovate Fall
and I'm joined by Florencia Adesone of J.

{{00:00:10}}
P.

{{00:00:10}}
Morgan.

{{00:00:10}}
How are you?

{{00:00:11}}
I'm doing great.

{{00:00:12}}
Thanks for having me, Paul.

{{00:00:13}}
Excellent.

{{00:00:13}}
Thank you so much for taking the
time out to come and speak with us.

{{00:00:15}}
Yeah.

{{00:00:16}}
Just to get started, would you like
to give a quick introduction to

{{00:00:18}}
yourself then and your role at J.

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P.

{{00:00:19}}
Morgan?

{{00:00:20}}
Yeah, sure.

{{00:00:21}}
So I lead Customer Insights and
ChaseNet Analytics in the Payments

{{00:00:26}}
and Data Analytics organization.

{{00:00:27}}
A bit.

{{00:00:28}}
I've been at JPE for about six
years and I was at McKinsey

{{00:00:33}}
doing strategy consulting before.

{{00:00:34}}
Excellent Thank you again so much for
taking the time out to speak with us.

{{00:00:37}}
You're speaking on a panel
about Open Banking today.

{{00:00:41}}
Looking at the US specifically, what
would you say are some of the key

{{00:00:43}}
benefits and use cases for Open Banking?

{{00:00:46}}
So I think macro level there's
four key benefits, right?

{{00:00:50}}
So you have increased customer
centricity, I would put that at the top.

{{00:00:55}}
There is operational efficiency, there
is increased interoperability, and then

{{00:01:01}}
I do think that there's also an element
around higher profitability, which

{{00:01:05}}
is a little bit sometimes tied also
to the operational efficiency piece.

{{00:01:08}}
But getting into a little bit
more detail because that's a

{{00:01:11}}
little bit like, yeah, whatever.

{{00:01:13}}
I, I think that there's an element
related to improving the ability

{{00:01:20}}
to evaluate risk better, right?

{{00:01:22}}
For example, I really love the
example of there are elements

{{00:01:30}}
of financial inclusion, right?

{{00:01:31}}
So I can use utility bills and phone
payments and Things that are non

{{00:01:38}}
traditional for banks to allow clients
or non bank or under bank population to

{{00:01:45}}
actually now access financial services.

{{00:01:48}}
I think that aspect is one
of my preferred benefits.

{{00:01:52}}
I do also like the fact that there
is benefits around fraud, right?

{{00:01:58}}
The idea of data sharing
within a data consent world.

{{00:02:02}}
Which, that's why you see my, roll
of ice because that's also a big...

{{00:02:06}}
It's the, same, token, there is
also an element related to data

{{00:02:10}}
privacy and data consent that
could be part of the challenge.

{{00:02:12}}
But I do think that there's an element
around increased access to financial

{{00:02:17}}
services, better servicing for clients
of those of those financial services

{{00:02:23}}
because there is more competition, right?

{{00:02:25}}
You're introducing more than the banks
that can provide this, offering, which

{{00:02:29}}
then also leads to a multiplicity
of more products and services.

{{00:02:34}}
That I think are leading to, to better
client outcomes from the standpoint of

{{00:02:38}}
the banks and the financial institutions.

{{00:02:40}}
The operational efficiency also
arise from, okay now we can get

{{00:02:46}}
our act together and as we build in
APIs, there's a lot of things that

{{00:02:50}}
can be automated and the processes
that can be much more streamlined.

{{00:02:54}}
Excellent, excellent.

{{00:02:55}}
I, the US has been a little bit
slower rolling out open banking

{{00:02:58}}
than, other parts of the globe.

{{00:03:00}}
Yeah.

{{00:03:00}}
What do you think the US could learn
from the, successful rollouts of,

{{00:03:04}}
open banking in the areas like Europe?

{{00:03:06}}
Yeah, so I, I think a couple of things.

{{00:03:08}}
So I think that the US has not been
as data regulatory driven, right?

{{00:03:14}}
So you have the model I, think, at least
in my head Europe, and the PSD two model

{{00:03:20}}
is the one that stands out because.

{{00:03:22}}
They started with PSD1 in 2007,
then they did PSD2 in 2018, and now

{{00:03:27}}
in fact in, June of this year they
already are doing a revision of PSD2.

{{00:03:32}}
So you have the regulatory framework in
which an institution says, Alright, so

{{00:03:37}}
we do want to increase competition, and
we want to make cross border payments

{{00:03:41}}
faster, and we want to make financial
services accessible to more people.

{{00:03:46}}
That's actually...

{{00:03:47}}
be very clear about the framework, let's
standardize the APIs and let's make it so

{{00:03:51}}
that there's like almost a level playing
field for all parties and in the US I

{{00:03:56}}
do think that the financial ecosystem
is on the one hand more developed and

{{00:04:01}}
more fragmented so it's actually less
there's a lot more banks in the US than

{{00:04:07}}
in different economies and I do think
that's part of it and I also think that

{{00:04:13}}
there's an element related to Stay tuned.

{{00:04:14}}
Yeah the fact that there is a lack
of standardization of, the, data,

{{00:04:20}}
which is a requirement for that
to really be at the forefront.

{{00:04:24}}
Having said all of that, in 2021, Biden
did put together basically a law that is

{{00:04:31}}
now a lot more closer to benefiting open
banking, and it's making this I would

{{00:04:36}}
say more at the forefront and center.

{{00:04:39}}
Clearly JP Morgan.

{{00:04:42}}
Is aligned, right?

{{00:04:44}}
And there are clear strategies that
banks are now putting into their key

{{00:04:50}}
priorities around making that a premise.

{{00:04:53}}
Because basically the other element is
we do see the Apples, the Spotify's,

{{00:04:58}}
and a bunch of really successful
non banks that have taken such a big

{{00:05:04}}
stance and moved forward in, in making
that happen, that even though The U.

{{00:05:09}}
S.

{{00:05:10}}
has been relatively slower in this
global economy I think it's realizing

{{00:05:16}}
that it's it's important to adopt it,
and it's also realizing that it's really

{{00:05:20}}
important to figure out the right way of
adopting it and protecting data privacy.

{{00:05:27}}
And therefore, I do
expect regulation to come.

{{00:05:30}}
Excellent.

{{00:05:30}}
And in the UK, I know some banks
have been a bit sceptical about the

{{00:05:33}}
commercial returns of open banking.

{{00:05:35}}
Do you think there's a way to monetize it?

{{00:05:38}}
Yes.

{{00:05:39}}
I definitely think there's
a way to monetize it.

{{00:05:41}}
I, do think that there's
trade offs, right?

{{00:05:45}}
What aspects do you want to monetize?

{{00:05:47}}
From the monetization, opportunities comes
from being able to offer services that

{{00:05:52}}
are adjacent to banking services, right?

{{00:05:54}}
As we think about, literally, like
the Spotify's the Apple's of the world

{{00:06:02}}
actually taking revenues from financial
services, you also see, I would say

{{00:06:07}}
you're going to see more and more
banks that are going to be benefiting

{{00:06:11}}
from the ecosystem of the data, right?

{{00:06:13}}
So if, the bank is generating the
consumer data from the loan, but actually

{{00:06:19}}
now participating in an ecosystem
where like that consumer is actually

{{00:06:23}}
also You know, managing the inventory,
the payroll, the accounting, and...

{{00:06:28}}
Insights from different providers that
typically wouldn't have been banks, but

{{00:06:32}}
now they're connected in that ecosystem.

{{00:06:34}}
I do expect that part of that ecosystem
will derive profits also to the banks.

{{00:06:38}}
Excellent, And coming off the back
of what some of you said earlier

{{00:06:41}}
as well when you've got so many
financial services players there.

{{00:06:44}}
each one might have a different kind
of vision for what open banking or

{{00:06:47}}
what they want to get from that.

{{00:06:48}}
Do you think that potentially
holds it back as well?

{{00:06:50}}
And do you think that more collaboration
is needed there to forge a way?

{{00:06:53}}
Yes, I don't think that it's
going to be like night and day.

{{00:06:56}}
We are going to see but, what we're
seeing is an accelerated growth.

{{00:07:00}}
And I do think that in The emerging
economies, the benefit and the ability

{{00:07:07}}
to adopt open banking faster and benefit
from it in a, at a wider scale also arises

{{00:07:13}}
from the fact that institutions are less
developed and there is a lot of benefit

{{00:07:19}}
of instituting non financial institutions
using the APIs to give consumers access

{{00:07:28}}
to new services and to better services.

{{00:07:30}}
and benefit from that.

{{00:07:31}}
I think in the U.

{{00:07:32}}
S., given that there is more I would
say there's a more modern financial

{{00:07:38}}
ecosystem already in place with a lot
of rigorous, if you want to call it,

{{00:07:44}}
guidelines, the benefit of the API is
harder to implement because you do need

{{00:07:50}}
all of the parties to adopt the same
structure of the API sharing in order for

{{00:07:54}}
that data to actually be interoperable.

{{00:07:58}}
But if you have My set of APIs, their
set of APIs, some of them in the cloud,

{{00:08:04}}
some of them are on prem, there's limits
to data sharing, there's like different

{{00:08:10}}
state rules applied even to a single
country, like it feels like there's a

{{00:08:16}}
lot more challenges in order for this
to be really, like you benefit when it's

{{00:08:21}}
universal and then all the clients are in
the same boat and then all the companies

{{00:08:25}}
have access to the same set of potential
ways in which to use that data to offer

{{00:08:32}}
the financial services to the consumers.

{{00:08:34}}
And I don't think that's yet in place and
I don't think that we're there yet, but I

{{00:08:38}}
do think that there's clear ways in which
we are seeing that there are There's a

{{00:08:44}}
lot more willingness to take that forward.

{{00:08:46}}
Excellent.

{{00:08:47}}


{{00:08:48}}
Yeah, I'm just to finish off that I
mean given your role with customer

{{00:08:51}}
insights as well What kind of key trends
have you been seeing from JPMorgan's

{{00:08:55}}
customers then and what kind of work
have you been doing to meet those needs?

{{00:08:58}}
Yeah So I want to separate what JPMorgan
is doing in open banking in general and an

{{00:09:03}}
API than what I do with customer insights
Even though there's of course a lot of

{{00:09:07}}
interjection I think that pay by bank, for
example, is a solution that JPMorgan is

{{00:09:13}}
put into the market that is very exciting.

{{00:09:15}}
I do think that basically allowing
merchants to get customers to go through

{{00:09:23}}
frictionless payments by tapping on
their app and knowing that their funds

{{00:09:28}}
are being used instead of, and that's
lowering their cost quite a bit.

{{00:09:33}}
It's, great for the bank to offer
different ways in which open

{{00:09:36}}
banking can affect customers
and merchants in a better way.

{{00:09:39}}
So that's one thing.

{{00:09:41}}
On the customer insight side We are
really excited to be able to offer the

{{00:09:47}}
ability of aggregate, de identify, and
in a very data privacy compliant way

{{00:09:53}}
generate insights that we already are
seeing that are benefiting our small

{{00:09:57}}
businesses, middle market clients,
and large clients, and make that

{{00:10:01}}
accessible for clients across industries.

{{00:10:07}}
really exciting opportunity ahead is to
basically use these insights, like to

{{00:10:12}}
basically take the customer insights into
this FinTech ecosystem and say, okay, not

{{00:10:18}}
only we're gonna get these insights to
help businesses grow within the channels

{{00:10:24}}
that JPM offers, but also in the channels
of the C2s of different industries, right?

{{00:10:32}}
So imagine the power of saying,
okay, I'm a C2 and I get also

{{00:10:36}}
the access to these insights that
are JPM, owned and generated.

{{00:10:42}}
And so now I'm a small business.

{{00:10:45}}
I operate with a C1, being whatever
aggregator that manages thousands of

{{00:10:52}}
small businesses in a portal, and now
those small businesses don't need to log

{{00:10:56}}
into Chase to benefit from the insights.

{{00:10:58}}
They just need to get it from
their C1, which I actually think

{{00:11:02}}
that's very exciting and I do
think that's where we're going.

{{00:11:04}}
Excellent.

{{00:11:05}}


{{00:11:05}}
Sounds great.

{{00:11:06}}
Thank you again so much for taking
the time out to speak to me, Florence.

{{00:11:08}}
It's been a pleasure.

{{00:11:09}}
Same here.

This is FinTech Futures at Finovate Fall
and I'm joined by Florencia Adesone of J.

Thank you so much for taking the
time out to come and speak with us.

Just to get started, would you like
to give a quick introduction to

So I lead Customer Insights and
ChaseNet Analytics in the Payments

I've been at JPE for about six
years and I was at McKinsey

Excellent Thank you again so much for
taking the time out to speak with us.

You're speaking on a panel
about Open Banking today.

Looking at the US specifically, what
would you say are some of the key

So I think macro level there's
four key benefits, right?

So you have increased customer
centricity, I would put that at the top.

There is operational efficiency, there
is increased interoperability, and then

I do think that there's also an element
around higher profitability, which

is a little bit sometimes tied also
to the operational efficiency piece.

But getting into a little bit
more detail because that's a

I, I think that there's an element
related to improving the ability

For example, I really love the
example of there are elements

So I can use utility bills and phone
payments and Things that are non

traditional for banks to allow clients
or non bank or under bank population to

I think that aspect is one
of my preferred benefits.

I do also like the fact that there
is benefits around fraud, right?

The idea of data sharing
within a data consent world.

Which, that's why you see my, roll
of ice because that's also a big...

It's the, same, token, there is
also an element related to data

privacy and data consent that
could be part of the challenge.

But I do think that there's an element
around increased access to financial

services, better servicing for clients
of those of those financial services

because there is more competition, right?

You're introducing more than the banks
that can provide this, offering, which

then also leads to a multiplicity
of more products and services.

That I think are leading to, to better
client outcomes from the standpoint of

the banks and the financial institutions.

The operational efficiency also
arise from, okay now we can get

our act together and as we build in
APIs, there's a lot of things that

can be automated and the processes
that can be much more streamlined.

I, the US has been a little bit
slower rolling out open banking

What do you think the US could learn
from the, successful rollouts of,

So I think that the US has not been
as data regulatory driven, right?

So you have the model I, think, at least
in my head Europe, and the PSD two model

They started with PSD1 in 2007,
then they did PSD2 in 2018, and now

in fact in, June of this year they
already are doing a revision of PSD2.

So you have the regulatory framework in
which an institution says, Alright, so

we do want to increase competition, and
we want to make cross border payments

faster, and we want to make financial
services accessible to more people.

be very clear about the framework, let's
standardize the APIs and let's make it so

that there's like almost a level playing
field for all parties and in the US I

do think that the financial ecosystem
is on the one hand more developed and

more fragmented so it's actually less
there's a lot more banks in the US than

in different economies and I do think
that's part of it and I also think that

there's an element related to Stay tuned.

Yeah the fact that there is a lack
of standardization of, the, data,

which is a requirement for that
to really be at the forefront.

Having said all of that, in 2021, Biden
did put together basically a law that is

now a lot more closer to benefiting open
banking, and it's making this I would

And there are clear strategies that
banks are now putting into their key

Because basically the other element is
we do see the Apples, the Spotify's,

and a bunch of really successful
non banks that have taken such a big

stance and moved forward in, in making
that happen, that even though The U.

has been relatively slower in this
global economy I think it's realizing

that it's it's important to adopt it,
and it's also realizing that it's really

important to figure out the right way of
adopting it and protecting data privacy.

And therefore, I do
expect regulation to come.

And in the UK, I know some banks
have been a bit sceptical about the

Do you think there's a way to monetize it?

I definitely think there's
a way to monetize it.

I, do think that there's
trade offs, right?

FinTech Futures

Expert Insight

At the FinovateFall 2023 conference in New York, FinTech Futures caught up with Florencia Ardisonne, Head of Product, Customer Insights and ChaseNet Analytics at JP Morgan, to discuss the growth of open banking in the US and what the future holds for the technology.