Open banking will significantly improve the customer experience. Open banking will benefit from access to enhanced services and will lead to similarly beneficial outcomes for financial services provisions. Among the benefits they will see are:
- Easier product comparisons
- Safer use of account aggregation tools
- Wider access to credit
- Provision of enhanced personal financial management services
- The second Payment Services Directive (PSD2) in Europe and the Open Banking Standard (OBS) in the UK aim to tackle the dominance of the established banks by forcing them to provide third-party access to their data and thus create a more competitive market.
- Providers that use a bank-as-a-marketplace strategy will become portals where third-party services can be accessed from within their own user interfaces.
- The bank-as-a-facilitator approach uses open access to promote the creation of new products and services from external developers. This can take the form of co-development of new consumer-facing products to be integrated into a bank’s user interface, or enabling other companies to deploy their own solutions based on a bank’s APIs.
- Using the bank-as-a-service model, providers act as fully fledged support services for third parties, offering them access to their payments capabilities and other core functions.
Verdict Financial’s “Open API Banking: Defining the Potential and Opportunities” explores the impact of open banking initiatives and assesses the various strategies that banks can employ. This report is based on findings from our Retail Banking Insight Survey, together with interviews with industry figures and secondary research.
Price: $5,250 (Single User License)
Published: Sept -16
Publisher: Verdict Financial
Report Format: electronic pdf