NTT DATA Financial Services: Open banking – Impending threat or innovation opportunity?
NTT DATA Financial Services: Open Banking – Impending Threat or Innovation Opportunity? Open banking is fast emerging as the next wave within Financial Services. While quite a few banks seem to be still struggling with digital transformation, this new shift has forced financial institutions to re-visit their existing digital strategy. Moreover, emerging regulations such as PSD 2 in Europe are creating a level playing field for the new market entrants, who have the potential to disrupt and disintermediate existing financial institutions. While openness will facilitate innovation and competition, there is still uncertainty around the mechanism and security of third party access. Banks run the risk of losing their existing customer base and a sizeable portion of their business if they don’t get this right. Interestingly, most banks still do not know what needs to be done. Amid the fear of losing out, lies the opportunity of leveraging open systems and services for greater efficiency and scale. As an example, multiple participants can be integrated to help in fulfilment and tracking of financial transactions, thereby optimising costs and improving overall customer experience.
In the long run, Financial Institutions will need to act in time to thrive in this new open world rather than just becoming highly regulated pools of capital. Join this session to learn more.