Open banking has been saved
How to flourish in an uncertain future
Regulatory initiatives are requiring UK banks to ‘open up’ customer transaction data to third parties – a development known as ‘open banking.’ This report from Deloitte UK examines how these changes will affect the traditional retail banking business model, and what banks can do to enable them to adapt to an ‘open banking’ future.
We believe that the opening up of banking data via the open banking initiative will, in the longer term, lead to a UK retail banking future in which banking products, services and functions are opened up to third parties. In the ‘marketplace banking’ model that would result from this, customers will be able to use a single banking interface to access products and services from a multitude of players, including incumbent banks, challengers and FinTechs. Several financial services providers would continually compete to offer customers tailored, good-value products via the ‘marketplace banking’ interface.
Within ‘marketplace banking’, we believe banks have four broad, non-mutually exclusive, strategic options:
Regardless of which strategic options banks choose, they will need to align their leadership, culture and organisational structures to a more digital mind-set, and ensure that they are able to optimise their use of proprietary and external data.
To discuss the impacts of open banking upon your business, please contact one of our team below. You can also discover further analysis on open banking and the future of banking generally at Deloitte.co.uk/FutureBank and on social media by using #FutureBank.