the opportunities of Open Banking
In order to remain competitive, existing banks and other financial service providers will have to embrace the principles of open banking. In summary, these are:
- The focus has to be on the customer
- Mutual competition must be encouraged
- There must be more opportunities for new entrants, new initiatives
- Banking must be more efficient and more fair
skills for open banking
banking in 2024When we ask Daan about what banking will look like in 2024 he says: 'Imagine a seamless experience. Your bank offers you insight into your full financial situation in your daily life as well as all financial services, additional services, advice and it contributes to your financial well-being. Based on a smart two-way integration, the sometimes cumbersome payment process at your favourite shops, restaurants and petrol stations is completely eliminated. You simply walk out without a payment transaction. At every important life events such as travel, family expansion, relocation, etc. your bank is a partner, a support. The focus is completely on what you need as a customer.
new business models
It is already noticeable that open banking encourages new entrants and new business models. For example, innovative initiatives have emerged from advanced analytics on movements in the investment markets:
- Predictive algorithms for consumer share trading based on your own transaction data around shares, market movements or the influence of the press on the value of shares
Advice on investments based on the chosen risk profile and goal of the consumer
open banking trends
According to Daan, there are a number of trends emerging in the open banking initiatives. First of all, open banking initiatives really put the needs of consumers first. Consumers expect immediate service and an excellent customer experience. "If you do not offer that, you will not be able to survive as a new provider.” stresses Daan. "You can not count on the loyalty that large banks still experience from their customers."
Secondly, open banking initiatives operate on a more personal level, both in their remuneration and in their communication. Personal loyalty systems that encourage peer-to-peer recommendations are more common. A lot of data is collected to enable personal interaction. This 'big data' is used to improve interaction, to increase brand loyalty, to encourage repeat customers and to thus earn income.
Third is the digitization and the growing gamification of financial services. The combination of open banking via APIs and other solutions in the market delivers fresh interactions. Think of chat-bots, cross-device payment options and secondary financial services. Secondary financial services can vary widely and yet can still be accessed via the banking app. Open banking makes banking more playful and easier.
banking becomes playful