Banks are poised and ready to make major investments in Open Banking to make the most of the transformational changes set to be made by PSD2 in 2018.
Out of a hundred payments executives from large, established banks globally, only one said that they were not planning to make significant Open Banking investments before 2020, representing a vast majority making energetic preparations.
A robust 63 per cent of North American banks said that getting to grips with Open Banking will be vital to remaining relevant, and fending off the agile new arrivals in the space once customer data is made available.
These findings have been gathered by Accenture, also noting that 52 per cent of the bank executives surveyed believe they will be forced to implement Open Banking to remain competitive.
Alan McIntyre, a senior managing director at Accenture and head of its Banking practice, said: “Unlike banks in Europe where it is mandated by regulation, those in North America and Asia Pacific have the luxury of deciding if, how and when they will implement Open Banking, and we expect many will do so as a way to more easily offer integrated financial services to customers.”
A massive 71 per cent of European bank respondents to the survey expressed beliefs that PSD2 is an opportunity rather than a threat, while only 63 per cent and 60 per cent feel this was in Asia Pacific and North American banks respectively.
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“As European banks ready their networks for compliance, banks across the globe are identifying opportunities to drive new revenue streams by offering services to third parties, such as consumer credit checks and identity management, enabled by Open Banking,” said McIntyre.
A PSD2 and its major changes are fast approaching, going live at the beginning of 2018, it is easy to lose sight of the fact that there are beneficial opportunities on the back of the new directive on the customer data of banks.
“Open Banking provides myriad opportunities for banks to generate new revenues and offer new products; however, it also puts banks at risk of becoming back-end, transactional players, with their products and brands buried deep in another transaction… Banks have an opportunity to use their trusted position with consumers to own the customer relationship, and provide the seamless digital experience customers want and that Open Banking enables,” McIntyre said.