Tuesday, 22 January 2019 | By: Herbert Leonelli, Regional Business Development Director, Profile Software
Over the past year of its implementation, Open Banking remains a key concern of Banks given the regulatory environment, the changing consumer patterns, and the new Fintech firms. It is becoming a need for Banks to embrace digital transformation in this area to achieve more profitable operations.
The banking industry is looking to achieve strong customer authentication, consent and reliability as required by PSD2, Open Banking and GDPR. This is supported in the report by PwC and the Open Data Institute* examining the first six months of Open Banking in the UK, where researchers found that by 2022 the country market could be generating £7.2 billion in value.
Banks can leverage the power of open APIs to compete with both small and big fintech providers beyond the regions where regulations regarding open banking and shared APIs have been implemented. Banks can embrace open banking APIs by innovating in their existing product range. They can identify customer expectations and deliver a more personalised banking experience, enhancing customer loyalty.
Financial Institutions can leverage the power of open APIs as customer patterns are changing and this can become beneficial to the bank through careful positioning or fruitful partnerships fostering innovation.
The article was also published on bobsguide (22.01.2019). Trademarks are property of the respective owner.