Banks are realising the transformational value of open banking platforms, and are even considering it as the banking industry’s ‘End Game’. In Europe, the early adoption of APIs became a necessity in order for banks to be able to comply with PSD2—which prompted banks to accelerate their way into open banking.

Open Banking presents an opportunity with new monetisation models, and unique win-win-win situations

Advancement in technology driven by mobile platforms has allowed consumers to expect a seamless, consistent, multichannel experience at a global level. And banks are faced to meet these demands, by transforming their current service models to provide for the elevated levels of customer expectations, while keeping costs down. If they don’t transform, banks would jeopardise not only the customer interaction, but also the entire customer relationship.  This, combined with the inference of PSD2 brewed a perfect storm for early adoption for banks in Europe. This transformation has paved the way for the adoption of open APIs in order to stay competitive, which in turn presents strategic opportunities for external service providers, Financial and non-financial organisations, to build on top of the data and architecture of banks and financial institutions. 

Open banking allows banks to bring fresh and appealing services to market faster, and cheaper.

Open Banking allows banks to bundle independant services under one roof, enabling them to be more relevant and appealing to the evolving customer. With the provision of such necessary tools to third-parties, banks can improve the speed and ease with which third-parties can add value to their platform, and its ecosystem. 

The tools a bank decides to provide, and the APIs they select to open, will become one of the key drivers in the future of Open Banking tactics.

Through the interpretation and convergence of their rich resources, a bank can harness the power of its Technology partners, to generate value for everyone in its ecosystem. Even though Open Banking offer many opportunities for banks, its challenging for a bank to decide which opportunities to go after. For example, should they take the role as a fintech app store, should they be a part of someone else’s ecosystem, or should they look for relevant partners to serve a particular niche? Etc.

The Open Banking Scene in Asia

A good majority of large banks in Asia Pacific are beginning to provide Open Banking services for their commercial clients as a key strategic initiative in their digital transformation programmes. They expect Open Banking to help them achieve double-digit growth in revenue, according to a global research report by Accenture. Open Banking enables customers to share their financial data securely with banks and third parties, making it possible to manage their accounts using APIs, easy transfer of funds, compare products etc.

The study also found that 90% of large banks in Asia Pacific said they plan to provide Open Banking services for their commercial clients, with 50% of the banks in the region expecting Open Banking to enable them to grow their revenues up to 10%, and another 33% are expecting it to enable them grow their revenues up to 20%.

The report, “Opening Up Commercial Banking, The Brave New World Of Open Banking in APAC,” are results based on a worldwide survey of more than 750 executives at global banks, SMEs, and large corporations.

Mitra Innovation’s expansion in Asia

Mitra Innovationa fast growing UK Technology solutions provider with a global footprint, specialising in digital transformation, cloud enablement, software developmentthe  first UK company to be named a WSO2 Premier Certified Partnerhas recently expanded its digital solutions to ASEAN countries with the opening of their new regional office at Parkview Square, Singapore. This expansion is a strategic hub that fuels talent and employment in the region, bringing new opportunities for business partnerships, bringing new revenue into the region, and providing the best practices and tools, and thereby elevating their innovation efficiencies to its next levels. 

Conclusion

Banks that can foresee their future in the open banking landscape, by having open banking strategies that align perfectly with their vision, are the ones that will lead the way. And accomplishing this cannot be just a luke-warm initiative, but a cut-to-the-bone, company-wide endeavor. 

To learn how Mitra Innovation Experts can help you, call us for a free consult at
0203 908 1977 or email us at
innovate@mitrai.com. We look forward to hearing from you.

DJ Rana

Mitra Innovation

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