3 steps to taking advantage of open banking
Our latest survey report reveals there’s a big difference in how open banking is viewed within financial institutions – and a lack of internal alignment could get in the way of leveraging the new capabilities it brings. Here are three steps institutions can take to make the most out of the open banking opportunity.
Our latest research reveals financial institutions are not always aligned when it comes to open banking.
Despite what the challenges may be, we have three tips to help businesses make the most of it.
To take advantage of the opportunities, institutions need to put open banking on the roadmap, embed capabilities across the organisation and put data and the centre of product development.
While financial institutions share a positive sentiment towards open banking, our latest survey report – Taking advantage of open banking – found that not every department sees eye to eye.
But despite the challenges, banks are still in the best position to offer integrated open banking services and unlock valuable new customer experiences. Here are three key steps to bridging potential gaps in culture and knowledge – and making sure they’re extracting open banking’s full potential.
1. Get open banking on the roadmap
Our previous reports have shown that European financial institutions are investing big in open banking, but the focus seems to be on compliance-related use cases, rather than innovation within products and services.
Financial institutions have a unique opportunity to improve their offering and introduce valuable data-driven digital services that today's customers expect. To do that, they should ensure that open banking is raised as an opportunity across all parts of the organisation – and incorporated into the roadmap.
2. Embed open banking capabilities across the organisation
The survey shows that financial executives are generally happy with the talent available across all departments of the organisation. Since open banking goes beyond regulatory requirements, the talent that has been working on building PSD2 APIs can be used to integrate these capabilities into other parts of the organisation.
And while technology modernisation is a key outcome from open banking investments, executives should investigate how these investments can benefit the online, mobile, or developer interfaces, as well as transform the customer journey and product origination processes.
3. See open banking data as the fuel for product development
Open banking is not just a matter of new technology or regulations – it's a culture change. It's changing the way people think about data, data ownership, and data usage. Leveraging customer data to optimise processes or to enhance services has traditionally been frowned upon within most financial institutions. It still is.
To become more confident in open banking, organisations will need to start thinking about the customer first.
How will the customer benefit from sharing their data? What is the value exchange?
Any service powered by open banking will rely on the customers' willingness to share information. This understanding needs to be rooted in the heart of the culture and operations of the organisation.
Get the full insights and find out what the numbers reveal when it comes to internal alignment on open banking in our survey report:
More in Open banking
2024-11-19
12 min read
From authentication to authorisation: Navigating the changes with eIDAS 2.0
Discover how the eIDAS 2.0 regulation is set to transform digital identity and payment processes across the EU, promising seamless authentication, enhanced security, and a future where forgotten passwords and cumbersome paperwork are a thing of the past.
Read more
2024-10-08
6 min read
Lending essentials: how enriched data solutions help lenders tackle constraints
Enhancing your affordability assessment with Tink’s data-enriched solutions helps you put an end to inaccurate data, prevent fraud in loan origination and stay compliant – read on to explore the benefits.
Read more
2024-09-24
4 min read
Why Pay by Bank fits luxury retail like a glove
Pay by Bank offers a solution that addresses the potentially higher transaction fees and fraud risks while enhancing the customer experience for luxury retailers.
Read more
Get started with Tink
Contact our team to learn more about what we can help you build – or create an account to get started right away.
