Regulatory changes mandated by the European Union aim to give consumers choice, transparency and data control. But the prospect of open banking—which requires sharing customer data via open APIs with competitors such as other traditional banks, online-only challenger banks, financial services aggregators and potentially retailers—may give those in traditional banking pause.
We surveyed more than 100 financial services experts to learn how they’re handling key competitive issues and opportunities while preparing for the future. In a new report, published by Finextra and sponsored by Equinix , find out how the right interconnection strategy can help you embrace retail banking’s new digital frontier: Interconnection and Data at the Edge: A New Frontier of Competitive Advantage in Financial Services.
By opening up consumer data and allowing access via APIs, PSD2 gives non-banking firms a chance to compete with banks in the digital payments business by building financial services platforms on top of the bank’s own data and infrastructure. For instance, a social media site could begin enabling people to pay bills there, or a FinServ firm could offer budgetary strategies based on complex analytics of personal income and spending data.