Banks will have to master Open Banking or say goodbye
The Open Banking revolution is unstoppable. A generation of digital natives – but also older customers – are not loyal at all. But they are open to digital financial services adding value to their everyday lives. Indeed now is the time for the API revolution to start monetizing with new services, business models, partnerships and channels rising.
Already today we see independent payment services to be successful. Beyond payments new advisory apps in fields like financial education, savings, investments or loans with third-party access to clients bank accounts are convincing more and more customers.
Open Banking will also be a competitive factor in corporate banking: New levels of connectivity and KYC made possible by API Banking – maybe in combination with Blockchain – enable new B2B services that will make a difference for the commercial customer. At our first World API Banking Dialog last December in London we had some founders presenting their successful business models as well as digital banking leaders giving insights on what they are doing in the field of Open Banking. It became very clear the regulatory pressure of PSD2 in Europe is not the only business driver. In Asia and the Americas banks deliberately bet on API Banking. Financial services organisations realized the opportunities of Open Banking outweigh the risks. They are developing their own new Open Banking business models. A bank opposing this transformation will dramatically weaken its market position in a digital society and economy, so opposition makes no sense. Banks - just like other industries - have to be innovative and agile now to win the race and not being disrupted.
The 2nd API Banking Dialogue at 10th-11th of June will again focus on business models and opportunities. The cross-organisational nature of API Banking creates the need for an inspiring executive exchange to share ideas and views on strategy, markets, management and technology. Check the program at https://apimeeting.com/ See you in London!
Fintech Chairman/NED | Investor | Advisor | Awards Judge | Keynote Speaker | Influencer; CEO Polymath Consulting, CBI approved PCF2 and PCF3
5yVery true, but we also need to recognize that it is not only the fact they will offer APIs that will change the world but the fact that in Europe they will not be contracted to the TPPs as such they will have no due diligence done on them. To that end Konsentus this is what we provide - confidence in open banking by carrying out TPP identity and regulatory checking.