Open banking is becoming increasingly important within the retail banking sector. But how do you determine the right strategy and technology for your bank? While there are pros and cons to adopting various open banking strategies, recent (Payment Services Directive) PSD2 regulations have compelled you to make a decision about whether investing now in an API-led open banking platform is a worthy investment for you.
While PSD2 was put in place to protect consumers by making data and payment transactions safer and more secure, adopting the necessary API-led platform could be a burden to maintain. On the other hand, traditional banking has been a sufficient business model for you thus far.
The expectations of customer experience, as well as the pace of change for digital banking products, have been raised. With the rise of digital natives entering the market, you risk being left behind if you choose not to make the move. If you want to increase your customer base and draw in new customers, or even remain relevant in the market, you will have to expand your API offerings to enable new revenue streams and partner ecosystems.
Sure, open banking can be expensive to implement and challenging to maintain, but it doesn’t have to be. And the long-term benefits far outweigh any potential costs. Prioritizing the transition to open banking prioritizes the customer experience first—which prioritizes the longevity of your business. With the right API-led open banking solution, making the shift doesn’t have to be difficult, and the myriad of benefits await you and your customers.
If your competition is able to offer a wider variety of products and services than you can because they embraced open-banking, it won’t be long before you are pushed out of the market altogether. Don’t let that be the case. Learn more about open banking solutions and how TIBCO can help your organization make the transition.