Open Finance’s Exciting Role in Fighting Payments Fraud | FF News with CBI

Financial fraud is an ever present threat but Open Finance presents a new way of fighting it. In this brand new interview we spoke to the Chief Commercial Officer of CBI, Pilar Fragalà, to find out how they’re tackling fraud, ensuring compliance, and driving open banking innovation in Europe.

With the EU Instant Payments Regulation deadline approaching in November 2025, it’s prime time for European banks to assess where they stand on Open Banking initiatives and embedded finance.

In this video: 

• Find out how CBI’s Name Check service verifies IBANs in real time.
• What they’re doing ahead of the Instant Payments Regulation compliance deadline.
• What the future holds for Open Banking.

Tackling Fraud In a New Way With CBI

In our recent interview, Pilar Fragalà, who is Chief Commercial Officer at CBI, shared insights into how the company is shaping the future of payments and financial services. CBI, based in Italy, operates as an industry utility, working with financial institutions to develop those all important innovations, an approach which sets them apart in the European fintech landscape.

One area where innovation is needed in particular is the onslaught of financial fraud. With €2.0 billion lost in the first half of 2023, it remains one of the most significant threats to the European banking sector. Fragalà highlighted how fraud techniques are becoming more sophisticated, particularly with the rise of AI-driven scams like deepfake fraud and phishing attacks. To combat this, CBI has developed Name Check, a service that verifies IBANs and associated beneficiaries in real time. Launched in July 2023, this tool is already proving effective in reducing fraud and improving payment security. 

In addition, CBI’s IBAN-Name Check service ensures that the correct association between an IBAN and a VAT or fiscal code is verified before payments are initiated. This service has been widely adopted in Italy, covering 98% of the banking sector and supporting over 100 banks. You can read more about that here.

Compliance and the Instant Payments Regulation

There was also a lot of talk about the impact that upcoming regulations in banking are having on this area. The Instant Payments Regulation will bring faster transactions across Europe, and as such compliance with this has become another major focus for financial institutions. Fragalà explained that CBI anticipated these regulatory changes two years before they were formalized. This proactive approach allowed them to develop services that help banks verify payees quickly and accurately, preventing errors and fraudulent transactions in an era where payment speed is increasing.

The compliance deadline for the Instant Payments Regulation is set for November 2025, and CBI is already ensuring that banks and Payment Service Providers (PSPs) have the tools they need to meet these new requirements seamlessly.

Open Banking’s Untapped Potential

Despite its potential to revolutionize financial services, open banking adoption has been slow—largely due to a lack of consumer awareness and trust. Fragalà believes that banks need to take the lead in educating customers, launching awareness campaigns that highlight the real-world benefits of open banking. Security concerns also play a role in the hesitation, so enhancing security measures and collaborating with fintechs to showcase new use cases will be key in driving adoption forward.

CBI is actively supporting open banking innovation through its involvement in the EU Financial Data Access Framework (FIDA) and embedded finance solutions. By providing secure and innovative services, the company aims to unlock the full potential of open banking and make financial services more accessible, efficient, and user-friendly.

CBI’s Strategy for the Future

In the interview we also got an insight into their strategy for the future. As competition in the payments industry heats up, CBI is focused on three core pillars: innovation, collaboration, and interoperability. Fragalà outlined key projects that will shape the company’s future, including:

• Request to Pay – A service that allows businesses to send payment requests directly to payers, increasing transparency and reducing errors in transactions.
• Embedded Finance – Integrating financial services into non-banking platforms, including sectors like insurance and public services, to provide consumers with more data, insights, and seamless financial experiences.

By fostering partnerships across banking, fintech, and other industries, CBI is positioning itself as a leader in open banking and helping businesses, PSPs, and consumers navigate the evolving payments landscape.

The Bigger Picture

Throughout the discussion, Fragalà emphasized the importance of community-driven innovation. As a public consortium owned by its clients, CBI is uniquely positioned to develop services that meet both regulatory demands and business needs. For more thoughts from Fragalà’s colleague, Liliana Fratini Passi head here and catch more interviews just like this on our website.