Why? In some countries open banking is driven by legislation – such as PSD2 with mandatory deliverables and deadlines. In other countries progress is slower and propelled by a convergence of factors, including changing consumer behaviour and technical innovation. However, as the monetary benefits of open banking become clearer, the global move towards open banking will accelerate.
Banks that will derive real value from open banking will be those that think ‘outside the branch’ and become more entrepreneurial and responsive. The real opportunity is not merely to renovate the existing bank and simply take on some characteristics of the emerging challengers, but to fundamentally revisit the banking business model.
The successful banks of the future will be those that aim for a transformed future state enabled by open banking, where the entire organisation is mobilised around customer orchestration and servicing the personal financial needs of the customer, rather than an evolution of the current financial ‘product sales’ approach.
In this paper you can read more about successful open API implementations in banking and in other industries. These examples demonstrate that in all industries APIs have the ability to redefine the scope of a business and generate new revenues that would otherwise have been unattainable.