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  user 3:35 pm on November 28, 2017 Permalink | Reply
  Tags: banking ( 225 ), banks ( 784 ), Matters ( 4 ), Open, Trust ( 23 )   

  Open Banking: Why trust matters 

  With the introduction of the revised payment services directive (PSD2) in January 2018 just around the corner, #banks face a new and potentially disruptive era. #Open APIs and PSD2 will, in time, disrupt traditional #banking. It’s no surprise, then, that the majority of global banks are planning to invest heavily in open banking initiatives by 2020, as revealed in a recent Accenture study.

  

  But are consumers ready to embrace the era of open banking? Customers will, for example, be able to share access to their financial data with non-bank third parties, which could provide customers with new, innovative services using their customer data. However, consumers appear to have their doubts and concerns about financial services being provided by non-financial third parties. Another recent Accenture study shows that two-thirds of consumers in the UK said they won’t share their personal financial data with non-bank providers.

  These results suggest that banks already have an extremely valuable competitive advantage they can use as they build their open banking initiatives: their customers’ #trust. But in order to capitalize on this in a rapidly changing market landscape, banks need to act now and create their strategy for winning in the era of open banking.

  The banks need to move quickly because while they currently possess the advantage of customers’ trust, the study shows millennials are already significantly more open to using services from non-banks. Banks should use the time before PSD2 APIs become mandatory to strategically plan for open banking, create compelling digital launches, link into ecosystems and gather a developer community to be better positioned before non-banks make their moves.

  In the Nordics, we see quite a mixed degree of preparedness between various banks to enter the new market. In contrast, for example, retail companies seem to be actively grasping the upcoming opportunities. Many Nordic banks face challenges from adapting their legacy systems and architecture to become Open API-enabled business models.

  Reach out to us to learn more about how to address open banking in order not just to comply—but to compete.

  

  Jostein Damminger, Nordic Banking Lead

  

  

  The post Open Banking: Why trust matters appeared first on Accenture Banking Blog.

  Accenture Banking Blog

   

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  user 9:53 pm on November 16, 2017 Permalink | Reply
  Tags: banking ( 225 ), Demand ( 3 ), Meet ( 20 ), Open, Partners ( 31 ), technology ( 921 ), Vector, Volante   

  Volante Partners With Open Vector To Meet Open Banking Demand 

  #Open #banking APIs need an orchestration layer to interact with a bank’s existing systems.
  Financial Technology

   
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  user 8:53 pm on November 15, 2017 Permalink | Reply
  Tags: Bank ( 246 ), banking ( 225 ), banks ( 784 ), culture ( 9 ), Open, Opening ( 3 ), starts ( 3 ), technology ( 921 )   

  Open Banking Starts With Opening Bank Culture 

  Digital transformation and #open source amount to more than #technology — they require and inspire cultural change sin #banks.
  Financial Technology

   
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  user 3:35 am on November 9, 2017 Permalink | Reply
  Tags: banking ( 225 ), banks ( 784 ), Blockchain ( 836 ), Decide ( 2 ), Open, rose, thorn, whether   

  Banks decide whether Open Banking will be the rose or the thorn 

  When it comes to #Open #Banking, regulatory, technological and competitive pressures are forcing #banks to confront the choice posed by French critic, journalist and novelist Alphonse Karr: “We can complain because #rose bushes have thorns, or rejoice because thorns have roses.”

  Recent Accenture research indicates that banks in Europe (where Open Banking is being mandated) and in North America and Asia Pacific (where, at the moment, it is optional) appear to be choosing to admire the flowers.

  

  Our recent poll of 100 payments executives suggests that banks are seeing the opportunities inherent in allowing customers to share access to their financial data (such as bank account balances and transaction history) with non-bank third parties, so that those third parties can then create apps and services in which banking is embedded. Ninety percent of respondents expect Open Banking to boost revenues by up to 10 percent. Nearly two-thirds of North America banks say that implementing Open Banking is critical to remaining relevant and competing with new entrants, such as fintechs and tech giants like Google, Apple, Facebook and Amazon. A minority of banks (37 percent in North America, 29 percent in Europe and 23 percent in Asia Pacific) already distribute banking products through third parties to consumers with whom they do not have a primary relationship, although these are often through traditional distribution partnerships rather than digital embedding.

  Yet like a rose bush, Open Banking also comes with some thorny threats. Half of the banks are concerned that Open Banking will make them more vulnerable to security breaches and fraud, because banks must expose their proprietary software and application programming interfaces (APIs) to allow outsiders to integrate their services. This concern is particularly prevalent in Europe, where nearly two-thirds of banks think Open Banking will increase risk; a point maybe not unconnected with the new European GDPR data protection regulations and the stiff fines that will be levied for breaches. The other risk posed by Open Banking is a business one, and is the concern that banks will become commoditised product providers with their transactional services and their brands buried deep in transaction flows controlled by non-bank competitors.

  When it comes to Open Banking, the ability of banks to focus on the flowers and not the thorns will be helped by three strategic actions:

  1. Position Open Banking initiatives as a strategic growth priority, an efficiency opportunity, and a chance to improve the customer experience. Consider Citibank’s CitiConnect service.
  2. Treat data as a new digital business and monetise it. That is what the fidorOS platform aims to do.
  3. Proactively help retailers who are familiar with PSD2 to use Open Banking to improve their products and services and be first to the table with value-added propositions and new services. For example, Mastercard recently announced that it is opening access to its #blockchain API for merchants to create new digital commerce experiences.

  Banks can turn Open Banking to their advantage, and are likely to see revenue decline if they adopt just a basic compliance mentality. But doing so depends on how they look at it: as a #thorn to their existing value chain that they must minimise or avoid, or as an attractive new path to new products and services, incremental revenue streams, and a better experience for their customers. Done correctly, banks will be able to admire a glorious bouquet of roses at the centre of their business, rather than continually hunting for Band-Aids to stem the bleeding from pricked fingers.

  I invite you to read more about our survey findings.

   

  The post Banks decide whether Open Banking will be the rose or the thorn appeared first on Accenture Banking Blog.

  Accenture Banking Blog

   
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  user 4:53 am on October 30, 2017 Permalink | Reply
  Tags: banks ( 784 ), connect ( 5 ), Developing ( 6 ), Finance ( 69 ), Foundation ( 5 ), Gates ( 3 ), launches ( 58 ), mobile ( 112 ), Open, platform ( 57 ), technology ( 921 ), world ( 28 )   

  Gates Foundation Launches Open Platform To Connect Mobile Finance In Developing World 

  The #developing #world has many innovative #mobile money apps but most operate on a closed loop, limiting their value. The #Gates #Foundation has launched a #platform to facilitate connections for mobile money users to #banks, other mobile platforms and retail. It is avaialbe free through BitHub.
  Financial Technology

   
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  user 3:35 pm on October 29, 2017 Permalink | Reply
  Tags: banking ( 225 ), banks ( 784 ), Open, Opportunity ( 10 )   

  The open banking opportunity 

  #Open #banking—where #banks expose their data, functions and services to an ecosystem of customers, employees, third-party developers and vendors—has been hotly anticipated in Europe. We know almost US$ 1 billion was invested in PSD2-enabled services in 2016, up 200 percent from the year before¹.

  Of course, some of this investment came from banks. But much of it originated from the group of voracious digital competitors circling banks’ traditional territory. That’s no surprise. The drive towards open banking gives them a direct line into a potentially lucrative market. And, crucially, it’s a market where they’re well placed to deliver the flexible, personalized experiences consumers demand.

  

  Now, with PSD2 implementation across Europe just a few months away, new research from Accenture points to a major #opportunity for UK banks: We’ve found that more than two-thirds (69 percent) of UK consumers say they won’t share their personal financial data with third-party providers.

  Based on this survey of over 2,000 consumers, it’s clear that online retailers, tech firms and social-media players face an uphill battle to convince consumers to allow them access to their financial data. Especially since over half of them say they’ll never change their banking habits and adopt open banking.

  So why not? It all comes down to a lack of trust. Trust in online platforms and social-media companies as providers of payments services is low. We found most consumers would be unwilling to initiate a payment through an online platform (58 percent) or a social-media company (82 percent).

  Fear of fraud is the primary factor. An overwhelming majority (85 percent) of consumers point to the risk of fraud as the biggest barrier to sharing bank account information with third-party providers. Data protection risks and increased potential for cyberattacks also feature highly.

  By contrast, more than half of British consumers said they would trust only their own bank with their account information when seeking services like a better mortgage rate or savings account. This should be music to the ears of UK bank executives. Having won the trust of their customers over a period of many years, now is the time to build on that heritage to secure crucial early advantage in open banking.

  The overriding priority? Be open to being open. That starts with the culture. Banks have to encourage a cultural shift from the outset. Everyone from the c-suite downwards needs to be involved in the conversation about open banking. They need to see clearly how it can help the bank achieve its core objectives: gains in revenue growth, cost reduction and talent management. The bottom line? Open banking has the potential to be a key initiative within every bank’s digital transformation program. As such it should be high on the agenda. Take a closer look.

  But there’s a caveat: While we found banks can and should move fast to up their digital game and capitalize on the advantage they have in open banking, there’s a new generation of consumers coming through—and they feel very differently. Younger consumers (aged 37 or under) are more willing to trust non-traditional service providers.

  One-third of Gen Z’ers say they’ll be likely to use open banking instead of usual payment methods. That’s in stark contrast to the only six percent of baby boomers who feel the same way. The same generational split is obvious in another area: Forty-two percent of millennials and 52 percent of Gen Z’ers say they’ll give online retailers permission to initiate payments directly from their bank accounts using apps/websites.

  While this shows clearly where retailers need to focus their efforts in creating new payment experiences, in-store and online, banks themselves need to take notice if they’re to attract and retain business from younger consumers. That means no let-up in investments in social media, wearables and secure but frictionless customer authentication.

  Let us know what you think. Thanks for reading.

  [1] Accenture Research Analysis on CB Insights data

   

  The post The open banking opportunity appeared first on Accenture Banking Blog.

  Accenture Banking Blog

   
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  user 12:18 pm on October 1, 2017 Permalink | Reply
  Tags: APIs ( 26 ), banking ( 225 ), Created ( 3 ), Equally, Open   

  Open Banking APIs are Not Created Equally 

  There’s been a lot of discussion in the #banking industry about #open #APIs that can enable different software technologies to work together with the promise of spurring innovation and shortening time to market for new services. It’s the right conversation to be having, but it tends to overlook the inherent challenges in banking software. If […]
  Bank Innovation

   
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  user 12:18 am on September 30, 2017 Permalink | Reply
  Tags: Bank ( 246 ), banking ( 225 ), Competitive ( 2 ), Edge ( 3 ), Give ( 6 ), Open, Says ( 91 ), Starling ( 6 ), startups ( 74 ), U.K. ( 14 ), U.S. ( 60 ), Would ( 6 )   

  Would Open Banking Give U.K. Startups a Competitive Edge in the U.S.? Starling Bank Says, Yes 

  EXCLUSIVE— With P2D2 and other regulatory initiatives mandating the sharing of customer data, #open #banking is slowly becoming a reality in the United Kingdom and other European countries. Other areas like the United States, however, have not been quite so prolific, a fact that might actually make UK fintechs more appealing to customers if those […]
  Bank Innovation

   
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  user 12:18 am on August 17, 2017 Permalink | Reply
  Tags: 2018 ( 47 ), fintech ( 1,103 ), Open, Registration ( 3 )   

  Registration Now Open for BI 2018 

  Ready for two days of #fintech? Good, because #registration for Bank Innovation #2018 is now #open. Join fellow fintech innovators in San Francisco on March 5-6 for two days of inspired panels, startup demos, entrepreneurship, and the best conversations in fintech. Topics this year will include the future of banking, the next generation of mobile […]
  Bank Innovation

   
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  user 12:19 am on July 17, 2017 Permalink | Reply
  Tags: APIs ( 26 ), banks ( 784 ), Cores ( 3 ), Gateway ( 7 ), Open   

  Are Open APIs the Gateway to New Cores? 

  #Open #APIs have been advancing steadily across the banking landscape for a number of years, though just how “open” may be a point of conjecture. Many of the European neobanks have done it, such as Monzo and Fidor, and in Europe, where PSD2 is set to take effect next year, the issue is especially pressing. […]
  Bank Innovation