Open banking – What role for banks?
Technology, regulation, customer demand and social demographics are driving dramatic change in the way financial and other services are being created and delivered. In the financial industry, we hear more and more about the concepts of ‘open banking’ and ‘banking-as-a-platform’. In the long term, banks will need to find a new place in a global market where products, services and finance are increasingly integrated. But what exactly is opening banking and what does it mean in practical terms for banks? As non-bank entities gain ever greater access to customers and their data, how will banks stay relevant and competitive? How do they combine the power of their traditional assets – customer base, customer data, balance sheet and talent – with the new concept of banking-as-a-platform? How do they develop strategies to access, use, and build upon the data they have in order to add value to their customers? And given the opportunities that banking-as-a-platform may offer, how can banks develop a partnership strategy that provides value to their customers but does not diminish their customer relationships?