Change is inevitable as banks explore opportunities for leveraging open APIs to extend and transform their business models. This exploration is fueled by increasing pressures from customers, competitors and regulators —pressures that are driving innovation and opportunities within financial services.
An open API economy will impose new demands on banks’ business strategies, revenue streams and profitability. Bank leaders of the future will have a clear focus on their customers and markets and will collaborate with other organizations to strengthen their market position, either through increased use of digital technology platforms and/or digital insight that supports their specific business strategies.
Regardless of whether you are in retail banking or commercial banking, consider acting now. The rise of the open API economy is here, and CGI advises banks not to wait for regulators and competitors to force you to change. The open API economy is a great opportunity to do the following:
- Maximize payment transaction revenues for current and future payment mechanisms
- Exploit customer transaction data to offer tailored products and services, leading to profitable growth
- Implement new business models to extend the reach of the bank into new products, new customer segments, and new sources of revenue—all while improving customer experience
Banks that respond quickly to these changing market dynamics will be able to shape and lead conversations with customers, regulators, and potential (FinTech) partners. Those that adopt a “wait and see” approach will find it increasingly difficult to keep pace and maintain market position.
CGI believes that the ultimate winners in this competitive battle will be the ones who can plan for and adapt to a banking model where flexible and open “banking-as-a-service” platforms source and distribute tailored products and services to customers, utilizing third parties when required.
Read our white paper to learn more.