With open banking beginning to emerge as a new reality across the globe, it is no great surprise that banking consumers are also opening themselves up to participation in open banking ecosystem platforms. Given the thousands of open banking-related processes and applications a financial institution could pursue, what should financial institutions consider when delving into the world of open banking offerings?
- Creating a North Star strategy – such a strategy will help define target consumers and build solutions that match their needs.
- Determining an API usage strategy – FinTechs and other third-party service providers can open the door to new services and better match consumer needs.
- Creating and executing a technological roadmap – it is important that decisions be made on the technology and architecture that will construct new products/services. Organization should then follow logically from these decisions, including governance to keep the execution plan on course and in alignment with the overall business strategy.
- Using scale to operate efficiently – APIs and developer communities are living solutions with evolving innovation. Financial institutions will need ongoing capabilities to manage and optimize them post-launch for sustainable value.