Michael Möglich ist Fintech-Enthusiast und fasziniert davon, wie Technologie Menschen neue finanzielle Möglichkeiten gibt. In diesem Spirit führt er seit Juni 2022 den DACH-Markt für die globale Open-Banking-Plattform Plaid. Im Interview beantwortet er uns unter anderem die Frage nach dem Unterschied von Open Banking und Embedded Finance, berichtet, warum der deutsche Markt für Plaid so attraktiv ist, und wo man ihn eigentlich in der Fintech Week treffen kann.
*Das Interview ist auf Englisch.
Open banking vs. embedded finance: What are the differences? What are the similarities?
Open banking has enabled the rise of embedded finance. Embedded finance refers to companies outside of the traditional financial industry embedding digital finance in context and at the point of need for consumers. We’ve seen huge developments this year, from Apple buying Credit Kudos, to Google’s bank accounts and Pay tools, to Mollie and Mazda partnering for payments. These developments wouldn’t be possible without open banking. Open banking is the ability for people to control their financial data and plug it into different products and services they choose, from personal financial management apps to investing platforms.
Payment and Open Banking is a subject in most European countries, why not in Germany? What is your opinion on that?
Specifically as it relates to open banking payments, Sofort is an early solution that has been prevalent throughout e-commerce in Germany for quite some time. In addition, many German banks offer open banking-powered services and B2B companies rely heavily on open banking payments. Germany is home to some of the largest names in fintech, creating plenty of room for open banking to help more people onboard and engage with digital finance.
With Plaid, people can open a new digital financial account, fund it, and get started using it in a matter of seconds. Our open banking platform makes it easy for any company to offer a digital financial app or service and onboard their customers. In Germany, we offer our Account Information Services and Payment Initiation Services for accounts at the majority of financial institutions in the country. Plaid covers 95% of the market, including Deutsche Bank, Commerzbank, ING, Comdirect, Revolut, N26 and more.
With our open banking data network and payments platform, any company in Germany or that wants to serve German users can offer a seamless account opening experience. Our open banking data network enables any company to verify millions of accounts across Europe and North America and share real-time account insights, and send instant payments – all through one integration.
And why is the German market still attractive for you?
Germany holds immense opportunities for digital finance in Europe. In 2021, Germany reached a smartphone penetration of 89%. The pandemic has produced some major changes in how Germans pay and use financial apps and services. The vibrant local fintech ecosystem continues to create new apps and services that give people more control over their financial lives and will continue to reshape their relationships to their money. That means huge opportunities for Plaid to enable local developers to deliver the digital financial future in Germany.
As such, it is a priority market for Plaid as we expand across the globe. We’ve entered the market with ambitions to make it easier for companies to offer their services in the market; developers building new fintech apps and services in crypto, wealthtech, financial management, and more, build simple digital financial experiences; and to make it easy for anybody in Germany to manage their money however they want.
What do you hope for from Fintech Week? And what are you actually looking forward to the most?
I’m looking forward to connecting with the community! On Monday, you can hear our perspective on what’s ahead in crypto and how it can reach the mainstream during the blockchain session at 5pm. Be sure to meet our team at our happy hour immediately following the panel! And, on Wednesday, meet our team at Plaid’s masterclass on providing the best onboarding experience for your customers at 4pm.