Open banking is defined as exposing of data and services by banks to third-parties and customers via APIs. Regulations, evolving customer demands, and market pressures including increased competition from FinTechs are pushing Banking and Financial Services enterprises (BFS) to pivot to open banking. As banks move from a product-focused to a customer-focused approach and focus on becoming orchestrators of customer lifestyles and businesses, open banking will allow banks to capture disproportionate value from its disruptive potential.
The drivers of open banking vary significantly across regions. While regulations are a key driver in European Union, the United Kingdom, and Australia; customer demands, and market pressures are key drivers in North America. As markets mature differently, banks will need to adopt appropriate strategies to progress on their open banking journeys.
In this research, we explain the definition of open banking, explore the evolving adoption trends across geographies, and outline the strategy for banks to successfully implement open banking initiatives.
