Tech Specialist Kony Buys Digital App From Umpqua Bank
#Umpqua has taken personal banking #digital so it can provide every customer with a banker they can call on for assistance.
Financial Technology
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London’s Metro Bank Adds AI-Driven Advice
London’s #Metro #Bank has developed an #advice engine with Personetics to help users manage their money better by getting to know their earning and spending patterns.
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25 Million Mobile Users at Bank of America, but only 2 Million Are On Erica
#Bank of #America might have 25.3 #million active #mobile #users, and #only 2 million of those users are using the bank’s virtual assistant, #Erica, at present. That’s not even 8%. “Keep in mind that we started the rollout earlier this year with Rhode Island, which has a relatively small population, and completed in all markets in […]
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Unity Bank Chooses Finastra for New Digital Loan Product
Today #Finastra announced a partnership with Wis.-based #Unity #Bank for a #digital #loan solution. Unity Bank, with $ 450 million in assets, has begun to leverage loan #technology to streamline its commercial lending and consumer lending processes. Bank Innovation spoke with Unity Bank senior vice president and commercial lending manager Darrin Wilson on what “streamlining” will mean […]
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Cultivate your bank to compete in Open Banking ecosystems
When an insect searching for food triggers a Venus flytrap, the carnivorous plant reacts within half a second to capture it. It doesn’t have to get ready for that interaction—it’s always ready. #Banks need to have the same type of rapid reaction when it comes to partnership opportunities if they are going to thrive in the complex ecosystem of #Open #Banking.
In my last blog, I discussed how traditional banks will likely evolve into various open platform business models to ensure future growth. New entrants like banqUP, Revolut and Starling are already attracting consumers to the concept of marketplace banking—and there are indications that many incumbent banks are getting ready to follow suit. This approach wraps the best money-related apps, products and services from third parties around a robust and well-branded core financial services product (such as a current account or payments) to deliver a richer customer experience and create powerful network effects. Incumbent banks are starting to adopt this model to grow their businesses, making their APIs available to outsiders. These include Barclays, BBVA, RBS, Citi, Santander, Capital One, DBS #Bank, Goldman Sachs and others. While our recent research shows that only one percent of banking revenue in the US is being generated by open platforms, it has the potential to rapidly mutate into a Red Piranha flytrap that takes bites out of incumbents’ revenue.
We’ve conducted further research to assess where banks stand in their readiness to #compete in the emerging open platform economy—examining three requirements for a healthy and collaborative ecosystem:
- Developer portal: the channel environment and experience for developers to interact with bank and customer data
- API offerings: the types of banking products and services being exposed as APIs for developers to consume and develop applications around
- Developer #ecosystems: the adoption of Open Banking across a broader developer community
Read the report We found that global card services and global financial institutions offer the most advanced and differentiated capabilities across these three dimensions. Banks in southern Europe are differentiated by their platform usability and ecosystem engagement abilities; this explains the relatively higher maturity of developers in these regions. Western European banks seem more focused on exposing APIs that deliver value-added services. Leading digital banks, such as BBVA, which have already made APIs available beyond those mandated by regulations, are presenting various approaches for usage and pricing—a key indicator of developer-portal maturity. Although the developer ecosystems of global banks and card services are clearly ahead of other financial institutions, our research shows that southern European and Nordic banks are rapidly catching up.
Despite the emergence of more aggressive approaches, the majority of incumbent European banks are only offering those APIs required to comply with PSD2 regulations, and very few are moving into value-add APIs. Fintechs and challenger banks, on the other hand, are working to offer a broad range of APIs and look more like non-financial services platforms, such as Amazon, which offer upwards of 100 APIs for third-party consumption. Also, card services like Visa and Mastercard now offer at least 25 API products that enable a range of services from accessing core business services to advanced data insights.
Platform banking is still in its infancy, yet we expect to see an explosion of Open Banking APIs from financial institutions in the years ahead.
Take these steps now to ensure your bank is ready:
- Seek out best practices from outside the financial services industry
- Develop a strategy to distribute open APIs
- Identify the value in going beyond compliance
- Introduce transparency in pricing for API consumption
- Accelerate network effects through platform innovation
I invite you to read more about our research and banks’ relative open platform maturity in our report, Competing in the new era: Find value in Open Banking ecosystems
The post Cultivate your bank to compete in Open Banking ecosystems appeared first on Accenture Banking Blog.
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Roboadvisor Betterment Will Not Apply for a Bank Charter, CEO Says
#Roboadvisor #Betterment is not interested in having its own national #bank #charter, Bank Innovation has learned. Last week, alongside the endorsement of the US Treasury, the OCC was finally opened the application process for fintechs seeking a special national banking charter. The one major stipulation from the Treasury was that the charter only be open […]
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Does a Bank Charter for Square Still Make Sense? CEO Jack Dorsey Thinks So
POS payments provider #Square is #still interested in pursuing a #bank #charter, but how? It may be more challenging given that the company will be paying more attention to its customer-facing prepaid products like Square Cash and its Cash Card, according to CEO #Jack #Dorsey in the company’s earnings call yesterday. Square CEO Jack Dorsey […]
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Turkish Bank Albaraka Launches Neobank in Germany
#Bank-backed neobanks are giving traditional organizations the opportunity to cater to specific audiences, usually younger tech-savvy audiences. But lately, more #banks are realizing that a digital platform free from a legacy system can provide more opportunities for personalization. One such example of this is the #Turkish bank #Albaraka Turk, which launched a digital-only bank in […]
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Provident Bank to Join Zelle Network Next Month
#Provident Financial Services will be implementing the #Zelle P2P payment system “later this year,” according to CEO Chris Martin on the #bank’s 2Q18 earnings call yesterday. However, Provident Bank director of marketing Rob Capozzoli told Bank Innovation in June that it plans to roll out Zelle in August. Capozzoli did not provide a specific date for the August […]
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Bank of America Merrill Lynch Launches Mobile App for Prepaid Commercial Card
With over 25 million #mobile #bank users on the retail side, Bank of #America is shifting attention to ramping the numbers on the #commercial side, with the launch of a mobile app for its #prepaid commercial cards. Today, Bank of America #Merrill #Lynch unveiled an app specifically designed for reloadable commercial prepaid cards. These cards […]
Bank Innovation
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