Open Banking promises to be the next game changer in our industry. All around the world, banks are beginning to explore its potential. Some have already been doing it voluntarily, keen to drive innovation and ensure they remain relevant with their customers. Others are being pushed by forthcoming regulations, which will force banks into opening up their customers’ data to third-party software and app providers through APIs.
It’s both an exciting and daunting time for banks as they navigate the challenges associated with the impending changes that Open Banking brings with it. Certainly, Open Banking will make our industry more open, fragmented and competitive. How banks act now will almost certainly determine their future success.
While they face threats from outside competition and risk losing the long-held customer relationship that has cemented their role as financial service providers until now, we think that banks should see Open Banking as an opportunity. It’s a chance to be proactive, drive innovation and develop new services and customer experiences that will resonate with today’s consumer.
For those banks that move beyond compliance and act promptly, Open Banking presents a unique opportunity to capture additional market share, fuel sustainable growth and remain at the centre of the primary customer-bank relationship.
In this Efma Digest, we highlight some of the key areas banks need to focus on if they are to embrace Open Banking successfully. Split into four parts, we look at why Open Banking is such a top priority for banks, how banks around the world are reacting to the changes it brings, and the opportunities and challenges banks face on their implementation journey, looking at important areas such as how to take advantage of existing assets, managing IT costs and expectations, and considerations around security and control. In part four, we then set out ten recommendations for the successful adoption of Open Banking, drawing insight from recent research and real-life success stories.
Keywords : Bank Products & Services , Digital payments/Wallet , Digital/Mobile channels