Open banking: an opportunity for banks to rethink their business model 24 November 2021
The platform economy is pushing banks to reconsider their model and become part of wider ecosystems. This raises the question of what path to take in this open banking journey, which is precisely the subject of the study we carried out with Wavestone.
This study aims to quantify the level of achievement and ambition of banks in open banking with a focus on the open distribution model. We wanted it to be very quantitative, but also to add value through qualitative insights and feedback from bank executives. In the end, more than 50 banks from all over the world participated.
For most financial institutions, the open banking approach was initially driven by regulation like PSD2 in Europe. It puts the focus on opening a very specific set of services like account information and payment initiation but may have also limited the rise of other ideas. This is the perfect time to leverage these investments and create new services with a more customer-centric approach.
On this path, on which we are still at the beginning, banks will face very exciting challenges:
• Reshape their business models, taking into consideration other distribution channels.
• Change the organization mindset to design “open” services from their very inception.
• Improve their architecture and delivery model to support these new ideas.