How many "Supervisory Entities" does the US finance industry have?

The open banking era is upon us, but banking basics still need to be performed as financial institutions weave through the disruption. Most financial institutions do an exceptional job of managing often-overwhelming levels of compliance requirements, and must continually navigate change, especially as new tech presents both challenges and opportunities.

Just consider;

• The U.S. has the most complicated financial regulatory structure of any developed nation with 8 national supervisory entities. And, since banks can also be state-chartered, there’s another 50 state-level regulators

• In comparison, the U.K. has 3 primary “lead” regulators including the European Banking Authority mandated by the EU

• The U.S.’ largest payments regulatory act was the Durbin Amendment, placing interchange limits on debit cards for banks with > $10 billion in assets

• The most impactful regulatory act in the EU is PSD2’s open banking mandate, expected to be in place by year-end 2019

• Only 30% of financial institutions report that PSD2’s compliance requirements were clear

• 41% of E.U. financial institutions failed to meet the March 2019 requirement to offer “developer sandboxes”

Indian neobank “Open” raises $30m

Finextra has reported that “Open”, an Indian neo-banking startup that targets SMEs, is set to launch a "programmable" bank account after raising $30 million in a Series B funding round led by Tiger Global Management.

Tanglin Venture Partners Advisors and existing investors 3one4 Capital, Speedinvest and BetterCapital AngelList Syndicate all joined the round for Bangalore-based Open.

Founded in 2017, Open partners regulated banks to offers SMEs and startups a business account designed to automate the way they run their finances by helping with things like payments and bookkeeping.

Open already has over 100,000 users and says it is adding 20,000 a month. This makes it the fastest growing SME-focused neo-banking service in the world.

With the new funding in place, Open is set to immediately launch a business credit card styled Open+, with a 30-day interest-free credit line.

Additionally, the firm is rolling out Layer, a "programmable" bank account that will let developers use APIs to build their own features on top of it and integrate with other services.

Anish Achuthan, Open CEO says: "This funding will help us accelerate our target of simplifying business banking for more than 1 million businesses at a greater pace and also launching new products like the Open+ card and Layer that will enhance our value proposition for small businesses."

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