The lowering of barriers to entry and legislation forcing financial institutions to allow consumers to direct which entities may access their account data promises and vibrant banking ecosystem in the EMEA region. Innovation will not just come from the challengers and newcomers given leave to flourish, it will come from those FIs that have the resolve to adapt. In the article, one pundit puts its well saying,
“It’s changing their mentality to recognise that data has value and to do something with that data to the benefit of their customers,” she says. “The innovation in terms of new services will filter back into the banks and they will be able to deliver modern real-time flexible services, rather than push old-fashioned products.”
Mercator Advisory Group anticipates most FIs will elect to modify their own operations to better leverage the availability of data under open banking and PSD2 precepts to partner with challengers as what consumers expect of their chosen FIs changes. It is an exciting time to be a FI, with the greatest risk being not taking any risks on new ways to interact and personalize customer experience to connect with consumers.
Overview by Joseph Walent, Associate Director, Research Services at Mercator Advisory Group
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