Fintech startup claims record for 64 Open Banking interfaces
Cirrostratus Exedra, the fintech founded by ex-MP John Hemming, claims to offer more Open Banking Interfaces to financial institutions than any other Open Banking Third Party Provider (TPP) after successfully adding Hargreaves Lansdown, Investec and The Access Bank.
Registered by the FCA to provide Account Information (AISP) as part of Open Banking, Cirrostratus Exedra is also authorised by HMRC to handle VAT and Income Tax Returns as part of the Making Tax Digital initiative.
Open Banking is a system of computer-to-computer interfaces that enable users to see all their bank balances in one place.
Many other providers in the sector concentrate on the nine larger institutions called the CMA9 which are made up of the UK’s largest banking conglomerates that are required by law to offer Open Banking facilities.
The nine banks represent a combined market share of over 90% of the UK’s consumer and small business bank accounts, however, Cirrostratus is looking to ensure that accounts held at the remaining 10% are also covered.
Market research indicates that the multibillion-pound company Sage is offering interfaces into over 30 banking networks. However, it has not been possible to find any other company promising more than 40 interfaces since a large proportion of the TPPs have concentrated on the CMA9.
John Hemming explained: “Cirrostratus now offers interfaces into 64 logins. This is the most consistent way of comparing Open Banking providers. Banks such as Barclays have a single login page that is used for a range of different services such as credit cards, personal or business banking. While Lloyds has four different logins for Lloyds, Halifax, Bank of Scotland and MBNA to cover its customer base.”
In comparison, Natwest (the new name for RBS) offers an open banking service, that only covers 16 different institutions. It even excludes banks owned by Natwest – Coutts and Adam & Co.
“An account with Cirrostratus on our Vat Direct service enables users to link together around four times as many financial institutions as Natwest, including subsidiaries of Natwest that are not presently part of its open banking interface,” said John Hemming.
A surprising omission from the list of interfaces from Cirrostratus is challenger bank Starling. “Starling doesn’t actually offer an Open Banking set of interfaces,” commented John Hemming, “therefore, we have decided to concentrate specifically on Open Banking where the interfaces are implemented to an adequately high security standard. “Starling was early in offering an API interface to customers, but did this using their own system of protocols.”
“Open Banking is particularly complex,” he continued. “as it uses a range of cryptographic techniques. However, much of this existed 25 years ago when I set up the first banking information service in the world on the internet – a day before Wells Fargo.”
Boomer CEO strikes back
Founder of Cirrostratus Exedra 60 year old CEO John Hemming, with his hands-on approach to fintech, says he is striking out against those who say tech is a young person’s business.
“Back in 1983,” he said, “when I founded my first tech business, JHC Systems Limited, I took a very hands on approach and designed and wrote a number of different computer systems. Similarly, when I got involved in the internet in the 1990s I wrote my own cryptographical software.”
“I then spent over a decade as a full-time politician. After that point I decided that I wanted to get back involved in the systems design and construction aspect of technology. My new startup business Cirrostratus Exedra Ltd sees me design and write a lot of the software.”
John Hemming designs and writes most of the software for both Making Tax Digital and Open Banking.
He is quite serious in his concern about ageism in tech. “A survey in late 2019 highlighted that there was more age discrimination in tech than other lines of business and that whereas this started at age of 41 in other areas of work in tech it started at the age of 29.”
Technology is seen as something which involves continual change and hence people need to continually learn new things. “Anyone working at the coal face in tech needs to keep up to speed with new systems and processes. Although people say it is hard to teach an old dog new tricks. I think it is a mistake to assume that older people have a problem keeping up to speed.”
He thinks a lot can be said for experience. “Cirrostratus is managing to be at the forefront of both Tax software and Open Banking Software. In my later years as chairman of JHC Systems I did not have the time to get involved in the details of the tech. However, now I can spend time to understand exactly what is going on and how to improve the service we offer our clients.”
Cirrostratus offers tax submission systems for businesses from tradespeople through to companies with a multimillion pound turnover. It also offers the ability to download bank statements into tax accounting and to operate treasury consolidation functions. All these services are currently free.