3 steps to taking advantage of open banking

3 min read|Published December 22, 2020
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.

TL;DR – Quick summary
  • 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.

TL;DR – Quick summary
  • 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

This image depicts a woman at a desk, holding a phone in position to scan the QR code of a paper invoice.
2024-03-07 · 6 min read
Smart moves with smart meters: how commercial VRP could support pay-as-you-use billing models

Discover how variable recurring payments can transform smart meter billing into a more flexible user experience – and utility providers more ways to support financially vulnerable customers.

Open banking
This image depicts a medium closeup of a woman standing with her back to a building, reading something on her mobile phone.
2024-03-05 · 5 min read
Serving younger borrowers: the impact of inaccessible lending

Streamline risk decisioning as a lender to lower operating costs using data-driven, digital loan origination, affordability assessment and income verification.

Open banking
EU flag
2024-02-21 · 10 min read
The full SPAA treatment – Tink signs up for new EU scheme

Tink has become one of the first participants of the European Payments Council’s SPAA scheme. We explain why SPAA was needed and how it could be the catalyst to transform account-to-account payments in the European Union.

Open banking

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.

Rocket