New technology and regulation will again affect global banking this year, says Simon Paris in an essay for finews.asia. These are the four major technology trends he believes will dominate the industry.
Trend 1: API-fication – financial institutions must open their world for business
Open or closed?
Banks, whether challenger or traditional, will have to confront this conundrum to open their systems, embrace open standards, ignite innovation from an open ecosystem of fintech and other players, and to exceed the greater customer and employee expectations that open banking drives. PSD2 doesn’t just open up account and payment information, it opens a frictionless customer journey; it will no longer be about applying for a mortgage – it will be about the entire house buying journey.
Trend 2: Platformification will create a world of opportunity
Banks have something everyone wants – and it’s not money; it’s data.
Adopting an open platform approach to digital transformation allows banks to leverage this data and be masters of their own destiny. By facilitating secure access to development platforms through open standards, banks can offer whole new capabilities to their customers directly (to maybe develop their own app), to third-party fintechs (to offer greater customer value), and to their own in-house IT staff (to accelerate innovation).
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