Opportunities in Open Banking Implementations
A new generation of bank customers almost completely stop visiting physical branches and replace the action and use the web to complete transactions and access services from their mobile devices. Incorporating customer loyalty programs, allowing them to securely authorize sensitive payments, and sending secure notifications with strategic advice-the banking app can become the center of customers’ financial lives.
The latest digital banking services have made the front, middle and back office banks completely automated. This may include not only the use of internet banking, mobile banking at the front end, but also the full coverage from the back end of complete banking automation, including direct processing.
As the competition increases among the new innovative entrants, banks should focus on ways to maintain their revenue streams. When it comes to customer experience, data protection regulation should be given attention and it is required to start focusing on the significance of adopting new technologies; banks are now gazing for opportunities to find out the importance of implementing open banking in such a context from small banks to leading banks. This will help to enhance mutual growth and create a healthy competition.
In order to achieve this, banks should focus on new strategies that can help boost customer experience and better two-way communication between consumers and banks; today, most of the consumers are not aware of PSD2 impacts and GDPR details.
Traditionally, banks were not used to share customer information; a necessary precaution to prevent competitive customer-poaching that promises a less costly, improved, and more efficient products and services. This passive approach is more suitable for customers that are looking to improve their financial overview; they need to actively search for and regain themselves instead of banks making the first move to transform their products and innovate them.
Open Banking doesn’t mean a direct step for success, but on the front line, with transparency and enriched customer experience, incumbents have a better chance to thrive. And, in the current equation, it is necessary to redefine what open banking really means and to whom it should benefit and effect. Thanks to technology, every aspect is transforming, and there are many more developments toward customer service and process improvement.