The retention of distinct lines of demarcation allows FIs to effectively recognize which consumers they have a solid relationship. As the fluid nature of finance becomes more prevalent for consumers, and being able to draw both services and products from a widening range of providers, FIs in the U.S. are becoming more jealous of the customers they have.
“The bank thinks if they have the data and it’s proprietary to them, then the solutions they can build on them are proprietary to the bank,” Sokolin said. That way, they can retain customers.
Mercator Advisory Group anticipates the collaborative services delivery model will become more pervasive in the coming year, rewarding FIs that are taking an inclusive approach to fintech. But doing so is a break from the walled garden approach that has served for some time now. By focusing on core functionality and secure APIs, Financial Institutions will be better able to secure the role as a critical information hub, facilitating the compilation and analysis of the variety of inputs and insights delivered from technology-based providers.
Overview by Joseph Walent, Associate Director, Customer Interactions Advisory Service at Mercator Advisory Group
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