So you’re curious to give open banking a go and see what you can do with it, but you have no idea where to start? This can be tricky – nobody orders a ‘box of open banking’ and gets immediate results.
A good first step is identifying the challenges you want to solve, or specific KPIs you want to improve. Maybe you have a lot of customer drop-offs early on, and need to remove hurdles in the onboarding. Or maybe you get customers in just fine, but have trouble making them stick long enough, or convert into a sale.
By focusing on the journey, you can recognise touchpoints where open banking solutions can improve UX or add business value – and then measure the impact.
Having a good onboarding process – when your customer first starts using your service – is crucial. Even tiny hurdles in this step can result in big drop-off rates.
When it comes to financial services, the onboarding can be particularly cumbersome. While definitely important, regulatory-mandated processes – like know your customer (KYC) and anti-money laundering (AML) checks – can add barriers that might cause customers to give up. And then try signing up with a competitor service instead.
One of the most straightforward ways open banking can come to the rescue in the onboarding step is by auto-filling account details when needed – so customers don’t have to do it manually.
With autofill, you get the data you need directly from the users’ bank account – in just a few clicks. Whether it’s for filling out signup forms, starting KYC and AML processes, or applying for a line of credit – data you get is always fresh and reliable.
After customers get their foot in, you’ll probably also want them to stick around so you can deepen your bond. This will help them get to a point where they’ll want to buy – or keep subscribing. Don’t disappoint.
One common solution to keep customers engaged in banking or finance management apps is multi-banking. This lets users view and manage multiple accounts, from multiple providers, in one place.
Offering multi-banking positions you to be the go-to place when people want to manage their accounts – which means more engagement, and more opportunities to build brand loyalty.
They’re in, they’re engaged – but you have yet to seal the deal? Open banking can help provide a logical, safe, and seamless transition to that sweet ‘transaction completed’.
Open banking can be used to help you identify sales opportunities. Once you know what a customer is already paying for (and how much), you can offer substitute or complementary products and services.
Did a customer recently get a mortgage? This is a great time to suggest homeowners insurance. Or maybe you notice they’re paying high interest for their mortgage – and you could reach out and offer a better rate.
And of course, there’s a whole treasure chest to explore with payment initiation services (PIS). Open banking also lets you easily (and cost-effectively) initiate payments by connecting to bank accounts. You can help customers easily transfer funds to a newly opened account. Or let them quickly settle an invoice directly in your app.
Sales with open banking is logical, safe and seamless, leading to more conversions and less drop-off.
It doesn’t stop there
These are just a few examples. There’s tons more ways open banking can be used to improve UX, and achieve better results throughout the customer journey – and not just in financial services.
New use cases and solutions are popping up every day. If you have an idea, and would like to chat about what open banking can help you achieve – reach out. If you’d like more inspiration, we packaged some of our most popular solutions into a neat little guide: