The opportunity of a century in banking is here
This is a guest post by Daniel Kjellén, CEO of Tink.
The financial industry has been standing at the
precipice of this major shift. Some banks have taken the leap –
innovative thinkers and leaders embracing the data revolution and using
it to deliver amazing services. For those who’ve waited, now is your
time – to take a leap, redefine how consumers manage their money and
seize a once-in-a-lifetime opportunity to change banking for the better.
The final PSD2 deadline on 14th September was the last
moment you could stand and wait. And now that it’s passed, the time for
change is here.
Europe has taken a historical leap to democratize access to
financial data, allowing customers to share theirs with any business
that offers them the best services. The change will take time. But
everyone in the industry is making a choice if they haven’t already.
And the choice is this: you can either join this data
revolution and be an indispensable player in this historical shift – or
wait on the sidelines while a tidal wave of change hits the industry.
A brave new world of banking
Open banking is the start of a two-decade-long transformation. Banking’s “Spotify moment” is here – the technology is ready, consumers are ready, and PSD2 has rubber-stamped the change.
While the banking industry has been a bit slow to act, a
huge opportunity for you lies ahead. And it’s massive in scope.
Trillion-dollar industries at the very core of banking – investments,
mortgages, pensions – will be up for grabs.
Now that the playing field is being redrawn, bankers have the opportunity of a century.
Rather than posing a threat to your existing business, what
open banking really offers is the opportunity to build a new one. One
that can meet the modern demands of consumers, leverage technology – not
only to deliver better experiences but to reduce the costs of doing so –
and to build a foundation that will prepare you to maintain your
dominance for decades to come.
The colossal amounts of data you have access to is turning
into a priceless resource for value creation. And that’s why now is the
most exciting and rewarding time to be a banker.
In this brave new world of banking, you will get the
customers you deserve — not just the ones you’ve inherited. As some
innovative players have shown, there are few limits in an open and
digital world. Instead of launching a money management app just for your
own base, you can leverage open banking tech to invite the customers of
20 competitors to your platform. Then use data insights to make them
yours forever.
In this data democracy, customers have the final vote – and
they’ll choose the best quality of service. It’s a competition for
relevance.
The fintechs of the world have proven just how fast
customers will snap up a frictionless and more intuitive service. How
robo-advisory is redefining how consumers manage their finances. How
smooth onboarding and seamless switching can be used to attract new
users, and how data can be used to unlock customer value.
Everybody can join this revolution because open banking will
open up a new age of collaboration. And with their scale, resources and
customer base, the smart banks stand a good chance of leveraging their
position by partnering up with nimble and tech-savvy newcomers.
A simple choice
This is the opportunity of a lifetime to redefine financial
services. And you can control your fate by taking action. The banks with
a relentless focus on customer value can get ahead of the rest. But the
ones who get stuck in the old ways risk irrelevance. With time, the
window for jumping on this opportunity will close.
The winners will be those brave enough to experiment and
build services that delight customers. And the reward will be enormous –
to be one of those who make history and remake banking for the better.
