The monetisation of open banking

This Point of View explores some of the key commercial issues surrounding open banking. It offers a practical summary of the views we have developed over an extensive period of working with many of the world’s leading banks. After a brief overview of the drivers of open banking, the paper examines how banks can monetise this opportunity, including API pricing and revenue options.

The future of any open banking offering will ultimately be determined by the value it provides. Banks must bear in mind that financial products are almost always part of a larger transaction: for example, people tend to shop for a new car before they finance the purchase. The challenge is how to position financial products where and when people need them.

In the new era of open banking, customer journeys can be unpacked and bank products and services disaggregated and made available through APIs. Over time, APIs can become bank products that are marketed to generate new revenue streams and reach new customers. But this also creates challenges and potentially threatens existing revenues.

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