Ninety percent of fintech companies cite enhanced customer experience as key to their competitive advantage. And while 61 percent of traditional bank executives say that a customer-centric model is “very important,” only 17 percent also say they feel “very prepared.” Sound familiar? How prepared are you at meeting the increased customer expectations to fend off disruptors?

Real Opportunity in Open Banking

Banks are under pressure to act. Not just because of various regional regulations around providing consumers access and control of their own data. The industry has evolved past simply complying. Traditional banking companies risk losing profits to tech-savvy competitors if they don’t innovate and embrace new technologies. Most banks now realize there is a real opportunity to monetize work being done around open banking.

Open banking requires a keen focus on security, data management, API management, and digital experience in general. In a recent blog post, Microsoft outlines three main areas that banks need to consider in their transformations:

  1. How do you ensure data quality? Banks looking to compete more effectively and empower customers to easily access their data need to be able to have a consistent and uniform set of information across the entire hybrid IT landscape. Data management helps enable processes of data exchange to be secure, clean, in the right format, and meeting all requirements. Before exposing core banking systems and customer data, banks need to have proper data governance and data standards in place to comply with risk and compliance initiatives. Companies also need to eliminate data silos. Creating a data management layer that takes an all-in-one approach to managing data across the organization can help customers and partners access data from multiple sources quickly and securely.
  2. Can you provide secure access to partners via APIs? APIs are the fundamental technology behind open banking. They provide a scalable, secure mechanism for passing data and offer a common way to communicate via data-driven systems. To successfully use APIs, banks need a full lifecycle API management solution that handles everything from planning and design to implementation and testing to versioning and retirement of APIs. 
  3. How do you capitalize on the data? Now that banks have all the data, effectively managed and accessible to partners, what’s next? That’s when true innovation starts—what can be done differently, what new products or services can be brought to market with that data.

Data management, API management, data integration, data virtualization–all the technologies involved in open banking relate to data. When you have all that data available, opportunities for digital transformation and advanced analytics emerge. Real-time offers to customers. Fraud detection with anomaly detection. Automated decision making. Open banking opens the door to many more opportunities to innovate and deliver greater value to customers and partners. 

The Importance of Cloud

When it comes to open banking, cloud is a critical part of banks’ IT strategy today, helping companies dynamically scale as demand for new products and services increases. According to the Microsoft article, “Adoption of cloud technology has created a world of possibilities for banks, allowing wide-scale shift from branch-based engagement to digital engagement.”

To learn more about how TIBCO technology solutions on Microsoft’s Azure cloud power open banking, read the full article here.