Why the benefits of open banking outweigh the challenges

Video feature

14 February 2018

Joining our open banking series of interviews in partnership with Finastra, Michael Freund, managing director at Credit Suisse, explains what open banking will mean to his business.

Freund believes that PSD2 will lead to a rather uncertain future for the retail financial services community. “It is the first time that banks have been really forced to open up and share their customer data if that’s what their customer desires,” he explains. “The concrete implications I think are very difficult to assess at this junction because there are a couple of unresolved concerns still in terms of liability, authentication and security and the customer is always the unknown animal in this game, so you never know what will happen.”

“It will be particularly interesting for people who have a diverse set of banking relationships,” he says.

Freund says many clients bank exclusively with Credit Suisse and, because of its diverse offering, he hopes there won’t be significant challenges to his business.

“I think it’s a challenge for clients who have multiple banking relationships who may be willing to aggregate their accounts, aggregate their portfolios, maybe use our other players for specific banking services,” he says. “I think for us it’s going to be very important to open up, to enable clients to insource their data, insource their portfolios and their assets and liabilities to our systems so that we can represent the total wealth and show them the total opportunity irrespective of where they actually have their assets.”

Overall, Freund believes the benefits of open banking will outweigh the challenges for Credit Suisse.

“Hopefully we can win clients who have one relationship with us to do other things with us in addition because now with the visibility they have and the access, they find it useful to consider Credit Suisse along with their existing bank,” he concluded.

Watch the interview in full here:

Pre-order your copy of Efma and Finastra’s “Bank as a Platform: Essential tools for Open Banking and PSD2” report.

Keywords : Customer service , API/Open banking

Geography : Switzerland