Can Ripple innovate the EU financial services market?

28 May 2019 | AtoZ MarketsDuring a recent panel meeting at the European Congress, financial services experts from Innopay, Swift, and Ripple discussed the outlook for the evolution in the European financial services markets. Can Ripple innovate the EU financial services market?

European Congress finance panel representatives in a brief

The financial services panel was represented by the 3 expertsDouwe Lyklama from Innopay; Saska Devolder, Swift’s officer in charge of Western and Central Europe; Marjam Delatine from Ripple’s European office.

The meeting started with Swift officials word about changing financial services in global perspective compared to Europe.

Swift is the world’s leading provider of secure financial messaging services and considered as one of the major Ripple competitors on the financial services market.

Innopay official Douwe Lyklama talked about customer’s data sharing, open banking systems and how they’re gaining traction everywhere in the world. Innopay is a digital company, founded in 2002 which provides a wide range of service, including banking, fintech, insurance, logistics, mobility & public services.

Marjam Delatine from Ripple’s European office spoke on the panel about open banking and the company’s blockchain technology. She proclaimed the idea of fully digital open banking for all payments. It is not a surprise that the company representative raised this theme for discussion. Ripple is known for providing global payments services based on blockchain.

European financial services market remains the most advanced

Saska Devolder, Swift’s officer in charge of Western and Central Europe talked about the main factors which contribute to the rapid development of the financial services in the Eurozone. Devolder explained that because Eurozone’s Central Bank (ECB) pressing the changes with deadlines that every member must meet, the European services market remains more advanced compared to the rest of the world.

ECB encourages the market to be more competitive so that the services offered by the system are better, cheaper, and more reliable. Moreover, increased competition and ECB’s regulatory drive brings new services to the public.

One of such innovations are development and deploy of a Pan-European payments system which went online last November. Also, Swift’s representative mentioned, that in Europe, there is the issue of every user’s “right to be forgotten.”According to Saska Devolder, it also applies to banks and financial institutions.

Innopay official Douwe Lyklama explained in his turn that the user or an authorized representative must consent all access to customer’s data.

It is worth to mention, that the open banking implementation in Europe is complicated because there are five different standards. That’s holding the EU back. However, the UK with its single standard for the financial service has managed to outdo Europe in the open banking systems business.

Will Ripple innovate the EU financial services market with the blockchain solution?

Marjam Delatine from Ripple’s European office explained how can Ripple innovate the EU financial services market. While speaking about the digitalization of the payments Delatine explained, that it will only happen through a trusted system of the blockchain because it is the best trust broker available.

Marjam Delatine added that Ripple will help financial systems in Europe meet the ECB deadlines by facilitating interoperability among different financial networks.

Ripple’s representer agreed with the previous spokespeople from Innopay and Swift, that European financial services are far more advanced than the rest of the world. She concluded that once banks and financial institutions learn how customers react to their new financial services, the rest of the world will follow.

Notable, that Ripple along with Swift and other 100 firms have recently joined a newly created EU Blockchain Association to promote adoption of the new technology across Europe.

Also, Ripple is actively meeting and cooperating with various European officials and financial institutions.

It seems that the digital payments company is heavily focused on integrating its blockchain technology in Europe.

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