Europe can’t do open banking without the banks
Banks have a key role in open banking. They should use it to compete with Big Tech, keep their customers happy and attract new ones.
What's holding open banking back?An open banking payment can be broken down into two parts. The first part is initiation. This is everything an open banking provider does to integrate a bank transfer payment option into a merchant’s checkout so that it appears as an option for the user when they press “pay”. This ranges from connecting to hundreds of banks via application programming interface (APIs), submitting payment instructions and managing the start of the consumer payment journey.
Banks should recognise that APIs are a new channel for providing services to their customers, and treat them as a product – just as they treat their online banking app.
The bank revenue opportunities from premium open banking services could also be considerable and... should convince even the more sceptical banks that open banking is a commercial opportunity.