Five keys to approaching open banking

2 min reading
Five keys to approaching open banking
Five keys to approaching open banking


In 2015 Francisco González, chairman of BBVA, stressed the importance of applied technology in the financial sector with this statement: “BBVA will be a software firm”. And one year later, many banks have now embarked on their digital transformation.

For this purpose the United Kingdom set up the Open Banking Working Group, which prepared a roadmap for open banking entitled The Open Banking Standard, designed to protect customers and stimulate innovation in the banking sector. This guide outlines how financial data must be generated and shared.

Last May Apigee hosted the event entitled Open Banking Summit 2016, aimed at financial services executives. The idea was to offer them advice and inspiration about how to start implementing their own banking strategy, and explain how APIs can help ensure the success of their initiatives

5 keys for the success of an open banking strategy

Several financial services executives shared advice in the 2016 Open Banking Summit on how to ensure the success of open banking projects. These are the five keys for achieving it:

  1. Avoid getting left behind: banks today no longer have the same control over access to information on their activities. Thanks to PSD2, the new Europe-wide payment regulation, data will now be more open and accessible. Banks must embrace all the different technological innovations that emerge in the world of finances to avoid falling to the back of the line in the market.
  2. Collaborate: to be able to stay ahead of the sector, fintech companies and APIs will have to work with banks and payment service providers in the next few years.
  3. Take risks: a few years ago many banks were reluctant to create websites for fear of compromising their customers’ security, but others took the risk and reaped the benefits. The same thing is happening now with APIs. Some banks were open to them from the start, but most dragged their feet and only realized the importance of incorporating APIs into their business models when the European Union recommended doing so.
  4. Find internal experts: banks must assign internal disciples so they can move forward and generate momentum. And banks also have to help external developers experiment with the benefits of APIs.
  5. Engage with the customers: consumers will benefit from the implementation of PSD2, but it will have a cost. Customers will have to make some concessions to third parties in exchange for the added value the banks are providing them. Although they will gain enormously, there is still no compensation, so in the short term they will need to manage the issue of how this trade is going to take place.

Are you interested in financial APIs? See BBVA’s catalog at this website

Source: Information Age

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