Open API Banking: Defining the Potential and Opportunities; Strategies for a world of open banking

Published: September 2016
No. of Pages: 43
    ReportsandReports

Provision of banking services in the UK and beyond has traditionally been dominated by a few large incumbents, leading to a landscape characterized by inertia and a lack of dynamism. New entrants have found it difficult to break into the banking market, and as a consequence competition has been limited, leading to sub-optimal outcomes for consumers.

Regulatory and technological developments are pushing banks in Europe and the UK to open up access to their systems and data via the use of Application Programming Interfaces (APIs). Consumers will benefit from easier product comparisons, safer account aggregation, and enhanced personal financial management (PFM) services. If banks embrace the concept, they will able to become one-stop shops for the best products on the market, crowd source the development of new services, and generate revenue by selling access to their data and capabilities. However, there is also a danger of banks becoming disintermediated and commoditized as they lose exclusive access to their data.

Critical success factors:

Offer access to enhanced data – Go beyond minimum compliance to share enhanced data with third parties. This will create new sources of revenue where third parties pay for access to advanced customer insight and analytics.

Become an aggregator – Avoid the threat of disintermediation by becoming an aggregator that facilitates customer access to accounts they hold elsewhere. Use these larger datasets to provide customers with a holistic view of their finances, together with more accurate and relevant insights and recommendations.

Provide integrated access to third-party services – Become a one-stop shop through which consumers can access best-in-class products from across the market. Consider working with developers, for example via an API-based developer portal, to create bespoke products that differentiate the bank and cater for the needs of niche segments.

The second Payment Services Directive (PSD2) in Europe and the Open Banking Standard (OBS) in the UK aim to tackle the dominance of the established banks by forcing them to provide third-party access to their data and thus create a more competitive market. Providers that use a bank-as-a-marketplace strategy will become portals where third-party services can be accessed from within their own user interfaces.

The report “Open API Banking: Defining the Potential and Opportunities; Strategies for a world of open banking” is a Retail Banking Insight Survey report explores the impact of open banking initiatives and assesses the various strategies that banks can employ. Additionally, this report provides you to understand the opportunities and threats that open APIs will create for banks. Moreover, it describes how specific banks around the world are already using APIs, their rationale for doing so, and their experiences to date.

Published By: GlobalData
Product Code: Verdict678


Did you find what you are/were looking for ? If not, read below and browse through other relevant pages for similar market research reports OR get in touch with us through the form/contact info in your right navigation panel and well share relevant market report titles for you to explore.

Related Reports:

  • Global Life Insurance Policy Administration Systems Market Size, Status and Forecast 2025

    This report studies the global Life Insurance Policy Administration Systems market, analyzes and researches the Life Insurance Policy Administration Systems development status and forecast in United States, EU, Japan, China, India and Southeast Asia....

  • United States Cards and Payments Market Report 2018

    In this report, the United States Cards and Payments market is valued at USD XX million in 2017 and is expected to reach USD XX million by the end of 2025, growing at a CAGR of XX% between 2017 and 2025. Geographically, this report splits the Unit...

  • United States Payment Smart Card Market Report 2018

    In this report, the United States Payment Smart Card market is valued at USD XX million in 2017 and is expected to reach USD XX million by the end of 2025, growing at a CAGR of XX% between 2017 and 2025. Geographically, this report splits the Unit...

  • UK Consumer Credit 2017: Forecasts and Future Opportunities

    UK Consumer Credit 2017: Forecasts and Future Opportunities Summary "UK Consumer Credit 2017: Forecasts and Future Opportunities", report offers five-year gross lending forecasts for all major lines of consumer credit up to 2021, along with a d...

  • Payments Landscape in Slovakia: Opportunities and Risks to 2021

    Payments Landscape in Slovakia: Opportunities and Risks to 2021 Summary GlobalData’s "Payments Landscape in Slovakia: Opportunities and Risks to 2021", report provides detailed analysis of market trends in the Slovakian cards and payments indu...

  • Global ATM Machine Market Professional Survey Report 2018

    This report studies ATM Machine in Global market, especially in North America, China, Europe, Southeast Asia, Japan and India, with production, revenue, consumption, import and export in these regions, from 2013 to 2018, and forecast to 2025. This...

  • Global Triennial OTC Derivatives Market Size, Status and Forecast 2025

    This report studies the global Triennial OTC Derivatives market, analyzes and researches the Triennial OTC Derivatives development status and forecast in United States, EU, Japan, China, India and Southeast Asia. This report focuses on the top player...

  • Global E-commerce Payment Market Size, Status and Forecast 2025

    This report studies the global E-commerce Payment market, analyzes and researches the E-commerce Payment development status and forecast in United States, EU, Japan, China, India and Southeast Asia. This report focuses on the top players in global ma...

  • UK Insurance Aggregators 2018

    UK Insurance Aggregators 2018 Summary "UK Insurance Aggregators 2018", report explores consumer purchasing behavior through price comparison sites and how it is changing. It discovers what is most influential to customers when selecting a polic...

  • The Future of Bermuda Real Estate and Rental Markets to 2025

    Bermuda Real Estate and Rental of USD XX million in 2017 is expected to increase to USD XX million by 2022, at a CAGR of XX%. Driven by surge in market conditions and technological advancements, the Real Estate and Rental has witnessed strong growth ...


Why ReportsnReports.com?

  • 500,000 market research reports and growing.
  • Top Fortune 500 Organizations trust us for research data.
  • 24/7 support on call as well as emails.
  • Your Details are safe with us.
  • Free support for your research requirements.
  • Report Delivery: Email
  • Delivery Time:
    • Upto 24 hrs - working days
    • Upto 48 hrs max - weekends and public holidays

Research Support / Custom Research

If this business study does not have the data and information analysis you need, contact us with your research requirements. We explore available market research reports to map your needs and share report titles with you. Alternatively, we can also offer custom research that suits your budget and timelines. Share your information requirements here.
Connect With Us
Email: sales@reportsandreports.com Call : + 1 888 391 5441

Subscription Option

Using our subscription option, you get access to market research reports and industry data of Consumer Goods market as per your needs. Get the best of Consumer Goods research reports by utilizing your research budgets in an optimum way.

More about our Subscription option
Report Alerts

Get Email alerts about market research reports from industries and publishers of your interest: