Open Bank Project - Simon Redfern, CastleCamp April 2012

About TESOBEWe’re an agile, funky team of highly skilled and experienced software engineers. We bring quality, creativity, best-of-breed technologies and openness to every project.

Four main drivers:1) Malpractice, Distrust, Corruption and Fraud2) Need disclosure / privacy options including Open Data3) Missing Web 2.0 tech integration4) Simple API protocols missing / lacking

InspirationAbout 5 Years ago I was

Thinking about

Corruption.....

..and a new type of bank..

Image source: John C. McCall and Christey Carwile, Other Africas, http://mccoy.lib.siu.edu/jmccall/otherafricas/

Then - Summer 2008 - Working in a theatre in Athens..

I said: “Lots of EU funded projects here.”

Set designer said: “Lots of corruption here!”

2 years later, Greece is in big trouble.....

Corruption and Fraud:

Over €30 Billion lost each year in Europe.

78% of European citizens think corruption is a problem in their own country.

Corruption - most talked-about global problem, according to a new BBC poll of more than 13,000 people across 26 countries.

'Corruption distorts markets and competition, breeds cynicism... undermines the rule of law... damages government legitimacy, and corrodes the integrity

of the private sector' - Ben W. Heineman Jr. and Fritz Heimann, The Long War against Corruption

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Accounting / Banking Scandals, Corporate and financial malpractice

Some examples of failed banks: Bear Stearns, Merrill Lynch, Lehman Brothers, Northern Rock, Anglo Irish Bank, Glitnir...http://en.wikipedia.org/wiki/Accounting_scandals

2007–2010 Financial Crisis is the worse since the 1930's great depression...

Charitable Status?Just a few examples of recent scandals involving charities:

Aid Money. Aiding who?

The World Bank StAR initiative was setup to recover stolen assets.

Inequality + Distrust + Information Deficit

Corruption

“Corrupt acts are almost always hidden. If you are behaving honestly in the public or private sector, you will rarely have a need to hide your actions.“ - Corruption, Inequality, and the Rule of Law, Eric M. Uslaner

Public “Financial Debug Tools”Fraudulent and Corrupt behaviour would be easier to spot / less likely

to happen if the public had access to “Financial Debug Tools”

Empowerment

Transparency

“Corrupt acts are almost always hidden. If you are behaving honestly in the public or private sector, you will rarely have a need to hide your actions.“ - Corruption, Inequality, and the Rule of Law, Eric M. Uslaner

Financial Privacy / Disclosure shouldn't have to be strictly

ON or OFF

2

Traditional Savings Account

Current status:A Traditional Savings Account. No one else can (should) login.

Level of DetailLevel of Detail

Disclosure

Frequency

no sharing (full privacy)

share with tax office

share with company

share with friends

share with everyone (public)

yearly quarterly monthly weekly daily real-time

financial “comfort” indicator

account balance

sub category totals

some transaction details hidden

full transaction details

But what if you want to share with your accountant / tax office?


Disclosure

Frequency


share with accountant / tax office

share with company

share with friends




account balance

sub category totals



Current Account shared with accountant

What if a Company wants to easily share its financial transactions with its board / share holders / team?


Disclosure

Frequency



share with company

share with friends




account balance

sub category totals



Company

NGO / Charity

An NGO or Charity could practice public transparency by revealing transactions to the web in real time.


Disclosure

Frequency



share with company

share with friends




account balance

sub category totals



“Banks are not veryWeb 2.0”

(In the sense of: They don't allow easy integration with 3rd party tools and services. Most people use software provided by their

bank to connect to their bank.)

3

But services such as Twitter and Flickr prove the benefits of enabling 3rd party software to access services.

An “API” allows original, high quality applications to flourish.

API's allow data from different sources to be combined..

... and data to be used in different formats and devices..

For instance a dash board including financial data..

c

Finance management PFM with geo coding...

Existing Protocols:• HBCI/FinTS in German speaking countries (and OFX in the U.S.A.)

BUT..

• Non standard server side implementations make client implementation difficult.

• Development and bug fixing is slow

• No 3rd party authorisation.

• Full login credentials required, so the user grants more access rights to the 3rd party web application than needed. Ths violates banks' Terms of Service

• Not RESTful / Not worldwide / Not Open Source

The Open Bank Project will leverage existing protocols where they exist and provide connectors for them.

4

TeOBP System

Internal IT System

Public APIPublic API

End-users

Third-Party

Organisation

Connectors

Developer Shareholder General PublicLocal Authority

Mobile and web applications

Possible applications of the API:● Sliding scale of Transparency / Disclosure

● Social media engagement (adding comments / meta data)

● PFM – Mobile and Web Apps

● VRM – Client's data updates.

● Trusted identity provision (Open ID)

● Digital safe / deposit box

● Fraud detection

● Pleasant surprises...

The Open Bank Project Aims to:● Open transaction data to larger groups of people and software

applications

● Raise the bar of financial transparency

● Enable more enjoyable and productive ways to access transaction data

How?• Apply Web 2.0, Secure Internet Standards, RFC

● Use and produce Open Source technology

● Crowd Source: ideas, feedback, bugs + trust networks

••

Banks NGOs Others

Partners / Talking to..

What’s in it for You?

• Better stake holder engagement• Improved brand image• Better deal suggestions• Use innovative financial services• Pioneer Financial Transparency

Want to Take Part?

Contact

Simon Redfern

simon AT tesobe DOT com

@simsysims

http://www.openbankproject.com@OpenBankProject

Open Bank Project - Simon Redfern, CastleCamp April 2012

Economy & Finance

Transcript of Open Bank Project - Simon Redfern, CastleCamp April 2012