Embracing Open Banking PSD2

Financial Institutions Bank on Change to Stay Competitive - PaymentsJournal

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 Removing barriers to enter the delivery of financial service tools will profoundly change how consumers are able to pick and choose how best to manage their financial lives, and many believe this will help to spur wider access to financial security and generate a more fluid and vibrant economy. The regulatory changes expected in early 2018 in Europe have effectually leant additional momentum to personalization of service delivery in the financial industry.

 

The future of banking will see more fragmentation with customers prepared to spread their business around, choosing different financial providers for different services. PSD2 and Open Banking is about making it easier for customers to do this. Customer experience is now at the heart of the new business model needed for Open Banking.

 

The interoperability of incumbent financial institution transactional data with specific-task oriented capabilities provisioned by fintech firms delivers on this promise. Mercator Advisory Group anticipates the increasingly concerted effort by financial institutions to brand themselves in playing to the ‘touch’ level of the services they themselves offer, and the comprehensive industry expertise they may provide. We’ll be exploring this phenomenon further in an upcoming research report due out later this month.

Overview by Joseph Walent, Associate Director, Customer Interactions Advisory Service at Mercator Advisory Group

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