In the aftermath of the 2008 global financial crisis, European regulators found it important that banks have more competition and consumers have greater choice. This has eventually led to the era of open banking, which allows other organizations like tech companies to enter the financial services industry and provide modern, innovative solutions for an increasingly demanding consumer base. While it may have been conceivable 3 years ago that such tech players would come to dominate the financial services industry, data breaches and data privacy issues have given many consumers reason for caution. Ironically, open banking (something meant to bring greater competition to banks), may end up helping banks grow and become more successful.
In the end, consumers want choice, freedom and the flexibility to create personalized services that add value to their lives. The ultimate winners of today’s open banking era will be those organizations (either banks or tech companies) that are on the pulse of what consumers want and that can demonstrate their value and credibility within the market.