Fabrick partners with Microsoft to accelerate Open Finance
is a believer in the power of integrated third-party developers to create better, more affordable and customisable products and services. Essentially, the company is dedicated to achieving a new standard in finance - modular, data-driven and guided by open technology.
“Fabrick is a partner for all those companies that want to pursue innovation projects while remaining competitive in strategic sectors for their business. In order to do this effectively, we identify market needs and develop a highly modular offer that guarantees the best customer experience,” Paolo Zaccardi, CEO.
“For us, the partnership with Microsoft represents an extraordinary opportunity to grow and strengthen our positioning in the market; we have found a valuable ally who, like us, has seen in technological evolution and Open Finance a new way to innovate the delivery of corporate services for the end-user.”
Open Finance: The future of innovation
Other compare Open Finance to a “sleeping giant” that shows great potential but hasn’t yet been sufficiently explored. This is being exacerbated by a general lack of awareness among the public. However, in an era where data is one of the market’s most abundant and valuable assets, the opportunity for FSIs to capitalise on the frontier is significant.
Microsoft Italy is apparently convinced of its potential and its partnership with Fabrick marks a key strategic shift.
“Fabrick perfectly embodies our thought that 'every organisation is a tech company.' This is indeed a very appropriate concept to describe an excellent company that has in its DNA the vocation for innovation as the key to transforming the financial services market to enhance openness and sharing,” commented Silvia Candiani, CEO of Microsoft Italy.
“By working as a team, we intend to contribute to the digital transformation of the sector with the aim of helping the many organisations operating in this area to offer increasing value to their customers, to lead their own financial strategies, and to optimise the management of their own resources safely and securely.”
BIS and MAS publish blueprint for cross-border payment idea
The Bank for International Settlements and the Monetary Authority of Singapore (MAS) has published a proposed blueprint for the multilateral linking of domestic real-time payment systems across borders.
The blueprint, titled Project Nexus, outlines how countries can fully integrate their retail payment systems onto a single cross-border network, allowing customers to make cross-border transfers instantly and securely via their mobile phones or internet devices.
The Nexus blueprint was developed through consultation with multiple central banks and financial institutions across the globe. It builds on the bilateral linkage between Singapore's PayNow and Thailand's PromptPay, launched in April 2021, and benefits from the experience of the National Payments Corporation of India's (NPCI) development and operation of the Unified Payments Interface (UPI) system.
The Nexus blueprint comprises two main elements:
- Nexus Gateways, to be developed and implemented by the operators of participating countries' national payment systems, will serve to coordinate compliance, foreign exchange conversion, message translation and the sequencing of payments among all participants. These gateways will be predicated on a common set of technical standards, functionalities and operational guidelines set out within the proposal.
- An overarching Nexus Scheme that sets out the governance framework and rulebook for participating retail payment systems, banks and payment service providers to coordinate and effect cross-border payments through the network.
“To achieve significant cost-reduction in cross-border payment transfers, enhancements must be made on two fronts: direct connectivity between domestic faster payment systems, and frictionless foreign exchange on shared common wholesale settlement infrastructures. The BIS Innovation Hub Singapore Centre is working on both. The Nexus project maps out a much-needed set of standards to achieve seamless cross-border payment systems connectivity.” said Sopnendu Mohanty, Chief FinTech Officer, MAS.
How do cross-border payments work?
Cross-border payments are currency transactions between people or businesses that are in different countries. The sender will choose a front-end provider, such as a bank or a money transfer operator (e.g. Transferwise), to initiate the payment. The receiver then receives the payment via the medium specified by the sender. Traditionally, cross-border payments flow via the correspondent banking network (CBN) which most front-end providers use to settle the payment. But, in recent years, new back-end networks emerged to optimise cross-border payments and enable interoperability between payment methods and provide senders with more possibilities to reach the receiver.
The increased international mobility of goods, services, capital, and people have contributed to the growing economic importance of cross-border payments. The value of cross-border payments is estimated to increase from almost $150 trillion in 2017 to over $250 trillion by 2027, equating to a rise of over $100 trillion in just 10 years.