Open banking lessons: 3 choices to make and how to partner the right way
Leda Glyptis can empathise with the banks. She’s a recovering banker herself. At a time when the incumbents are choosing to embrace this era of open banking – albeit slowly – the chief of staff at challenger consultancy 11:FS lays out the three choices they can make in order to make money and move their business forward. And for those who are considering a fintech partnership, there’s an immense opportunity to accelerate learning and become more agile – if they choose the right one.
Incumbents embrace the new banking era – slowly
It’s now obvious for most – open banking is a new way of working that is here to stay. Leda says there are few banks left that are treating it as a regulatory project. Instead, most are busy pulling apart their old value chains in order to create new ones. They’re onto building something wonderful – albeit a bit more slowly than we had all hoped.
3 choices open banking forces all banks to make
In the rush to decide what they need for this new journey, banks are forgetting to first decide where they’re going. And for this choice – the most important one – Leda sees three options: 1) make money the same way for as long as possible; 2) become a utility or infrastructure provider or 3) make money a new way.
The two types of partnerships to avoid
Partnering with the right fintech can be a powerful way to accelerate development, and energise a bank with purpose and pace. Leda talks about how to identify the meaningful partnerships – the ones that can transform parts of the organisation – and avoid the ones that are “empty calories”.