We can expect a return to fundamentals by many of the forward thinking financial institutions affected by the implementation of PSD2 and Open Banking regulatory changes. Those that are re-examining what it means to be a FI in partnership with their customers will be more likely to have taken the steps to beyond opening data access to authorized fintech.
Though banks will have to reconsider much of the way they are currently organised to run their business, operationally (breaking down siloed lines of business), culturally (creating an organisational structure more suited to agile and rapid API development) and more broadly considering its wider strategic perspective, fundamentally, the success of the banking API ecosystem that a bank may wish to build is dependent on the data it can define, aggregate and then safely expose via APIs.
Mercator Advisory Group recognizes that while there will be the forerunner consumers eager to take advantage of the newfound freedom going live in January 2018. We are quick to add that there will also be a large swathe of consumers that will want to make a more gradual movement to self-determination of data custody and sharing. Providing a sense of stability and continuity to these customers plays to FIs’ established brand, and will further cultivate the sense of support in navigating this newly opened territory and the responsibility it carries.
Overview by Joseph Walent, Associate Director, Customer Interactions Advisory Service at Mercator Advisory Group
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