Powering Open Finance In 80% of Italian Banks | FF News with CBI

Powering Open Finance in 80% of Italian banks.

In this insightful interview, Liliana Fratini Passi, Managing Director of CBI, discusses the organization’s pivotal role in driving innovation within the financial services sector. They’ve been on a 30-year journey, providing digital infrastructure for financial services companies and are now focussing on Open Banking and Open Finance through their platform, CBI Globe. 

There are plenty of thoughts here on regulatory compliance and collaboration in Europe. The Italian fintech also has a strong focus on interoperability, and fraud prevention. Tune in to find out more.

The conversation above, provides a comprehensive look into the milestones CBI has achieved, the challenges it faces, and some thoughts on recent technological advances in the likes of AI.

CBI’s Role and Vision

To begin the interview Fratini Passi discusses her leadership at CBI and positions the company as a fintech pioneer. Functioning as an industry utility, developing digital infrastructures for financial institutions, such as cloud and distributed ledger technologies, they also focus on transaction banking and open finance services. Fratini Passi emphasized the importance of cultivating a team-oriented approach, while encouraging creativity and innovation to stay ahead in a fast-evolving financial landscape.

CBI has managed to become a key player in the Italian and broader European markets, providing centralized services that cater to over 400 financial institutions. Its CBI Globe platform, launched in 2019, exemplifies this by offering a compliance solution for PSD2 (Payment Services Directive 2) and supporting the spread of open finance. The platform currently covers 80% of the Italian banking market, and facilitates interactions between payment service providers (PSPs) and third-party providers, handling over 80 million APIs. It’s an impressive statline!

The Power of a Network Economy

A significant theme in the interview was network economics—the value derived from interconnecting numerous stakeholders within a single ecosystem. Fratini Passi highlighted that CBI’s strength lies in its ability to aggregate a wide range of market participants. This ecosystem benefits not only the banking sector but also Europe-wide interoperability initiatives. She drew parallels between the evolution of financial ecosystems and the telecommunications industry’s approach to roaming, underscoring how interconnectedness fuels progress.

PSD3 and Open Finance

The conversation on PSD3 and what it can achieve for financial services is particularly interesting. When discussing the PSD3 directive, Fratini Passi elaborated on how it builds upon the foundations of PSD2, further promoting open finance by enabling more extensive data sharing across the financial sector. PSD3 is seen as a game-changer, aiming to enhance customer experience, improve security measures, and pave the way for instant Euro payments. This regulation will mandate that banks and PSPs offer instant transfers at no additional cost, significantly transforming the payment landscape by October 2025.

CBI is playing a pivotal role in helping institutions comply with these new regulations, developing products that address the security needs and leveraging the opportunities presented by open finance. Fratini Passi expressed that CBI’s strategic initiatives revolve around fostering innovation and security, while capitalizing on business opportunities arising from increased data availability and new customer-centric services.

Addressing Cybersecurity and Innovation Challenges

The conversation also has a discussion about how cybersecurity and technology innovation present opportunities and challenges. The financial sector is of course a prime target for cyberattacks, leading some institutions to adopt advanced security measures. Cooperation between stakeholders is paramount to promoting risk awareness and developing solutions that effectively respond to emerging cyber threats. CBI’s proactive approach includes attending international working groups and participating in key regulatory bodies to ensure compliance and security across the board.

Fratini Passi also highlights the rise of AI, particularly generative AI, and how it is revolutionizing the financial sector. While offering significant benefits, such as enhancing user experience and driving collaboration, it also introduces notable risks, especially in terms of cybersecurity. CBI’s focus is on ensuring responsible innovation, especially as it integrates AI into its service offerings.

Looking ahead, CBI’s strategic plan involves focusing on AI-driven innovation, ensuring that AI’s potential benefits are harnessed responsibly. 

CBI at Sibos

The discussion also touched on the importance of Sibos, which is in Beijing this year. Fratini noted that Sibos provides a unique platform for networking and forging partnerships, which are critical for driving progress in the sector. Recent collaborations, such as with SWIFT on name verification services, highlight CBI’s commitment to innovation and enhancing security on a global scale. At Sibos, CBI aims to stay at the forefront of emerging trends, including AI and digital currency.