By: Deon Crasto
I’ve spent years working in cross-border payments and regulatory compliance, and even I’m amazed by the rate of change in the U.K. right now. Brexit may have sparked plenty of debate, but there’s genuine excitement about rewriting the rules of open banking and real-time rails to lure—or retain—fintech innovators. It’s not all smooth sailing, of course. The dream of “open finance,” where a single fintech app can pull checking accounts, mortgages, pensions, and insurance data, runs into the usual suspects of inconsistent standards, privacy risks, and liability blind spots. Still, Britain wants to prove it can move faster than the EU—maybe faster than anybody else, period.
In the United States, by contrast, there’s only a patchwork of data-aggregation efforts and no overarching PSD2-style law. Real-time payment networks, such as FedNow and RTP, are still scaling up. If Britain successfully ties open finance to instant payments in a way that feels safe to everyday users, that could very well nudge American lawmakers and banking giants to adopt similar approaches. Or, if the U.K. stumbles—because regulators push too hard or not hard enough—those in Washington might double down on a cautious path. Either way, the transatlantic dynamic is impossible to ignore.
Much of the buzz focuses on real-time payments, along with the thorny problem of authorised push payment (APP) scams. The Payment Systems Regulator wants banks to shoulder more liability when scams occur, aiming to protect consumers who are duped into sending money to fraudulent accounts. My own experience building compliance workflows taught me that once speed becomes the norm, fraud usually follows close behind. Force banks to reimburse victims, though, and they have a strong incentive to invest in better anti-fraud measures. The risk is overcorrection: if liability rules are so stringent that financial institutions balk at rolling out instant payments, the convenience that real-time rails promise could be lost to compliance headaches.
In the United States, real-time rails face their own challenges, though liability standards differ from one network or regulator to another. If the U.K. manages to reduce fraud without killing adoption, it could become a case study for how fast payments and consumer protection can coexist. And if the approach dovetails with an open-finance ecosystem—tying bank accounts, pension funds, and other assets into a single digital hub—that success story could pique interest across the Atlantic.
That hub scenario is precisely what excites some but alarms others. The same consolidated view that helps a consumer track all their finances could also help a fraudster drain multiple accounts in seconds. And once real-time rails are in play, even a brief security lapse can be catastrophic. British regulators seem acutely aware of the stakes, which is why they’re layering on data-privacy guidance and considering uniform API standards. It’s not glamorous work, but it’s crucial. If private firms have to juggle wildly different compliance rules every time they link to a new financial product, “open finance” might never feel truly open.
Several U.S.-based fintech companies view the U.K. as a practical test environment for these ideas. If Britain’s approach to real-time rails and open banking fosters stable consumer trust—rather than scaring everyone with endless disclaimers or huge fraud losses—those firms could try replicating the model stateside. If not, it could reinforce the view that slower evolution is safer, granting traditional banks more time to adapt and less pressure to embrace comprehensive open finance.
Where Does That Lead Us?
Personally, I’m optimistic about finding a balance between speed, security, and innovation, on both sides of the Atlantic. British regulators may need to be nimble, but if the U.K. shows how to unify multiple data sets without creating a playground for scammers, there’s a chance other markets—including the U.S.—will gradually adopt similar rules. And if standardizing liability for instant payments proves to reduce fraud at scale, payment networks worldwide might follow suit, each adapting local regulations to match their risk tolerance and political climate.
In the end, velocity and data transparency are becoming the default setting in global finance. Consumers and businesses alike now expect near-instant transfers and consolidated account views. That shift comes with real dangers, but also incredible potential. If the U.K. manages to lead by example, it could shape how we all approach open finance in a post-Brexit, real-time age. From my perspective, paying attention to Britain’s next moves is well worth it—no matter where you live—because the lessons learned there may define how the rest of us handle open data, liability, and instant transfers going forward.
Real-time payments and open finance aren’t limited by national borders, after all. Nor are the hackers and fraudsters they invite. If Britain finds a model that balances convenience with security, it might give the rest of the world a tangible blueprint. Conversely, if the U.K. overshoots on regulation or leaves gaping loopholes, we’ll see caution in other regions. But either way, the chance to watch open banking and real-time rails evolve in near-real time isn’t just academically interesting—it might dictate the entire industry’s evolution for years to come.
Deon Crasto
Author Bio:
Deon Crasto is a seasoned payments strategist who has led initiatives at OnDeck, Checkr, and Velocity Global, focusing on AI-driven small-business lending, global monetization frameworks, and cross-border payments.
