New data sharing laws will test the agility of financial services firms

Digital Reinvention
06/06/2024 Article
Digital Reinvention
29 May 2024
29/05/2024 Best Practice Forum

Banking Beyond Borders: A Journey into Open Finance

Banks, insurers and asset managers must move quickly to protect their relationships with customers as pending Open Finance regulation in Europe, and elsewhere, will increase competition.

To succeed, they need to create a strategy to safeguard their direct customer relationships as new offers provide better service and more convenience to consumers and businesses alike. They should go on the offensive and strengthen ties with their customers by capitalizing on the new regulations and seizing some of the business opportunities they’re likely to create. Firms that try to stay as they are, and opt just to do their minimum to comply with the new Open Finance regulations, could become vulnerable and increasingly become mere product providers.

The biggest threat to financial services firms is that large data aggregators step in and take over the relationships those firms have built with their customers, said Christopher Schmitz, European Open Finance and Fintech lead at consulting firm EY Parthenon.

“If an aggregator can get access to data, either by being licensed or by using a licensed provider, and can then persuade customers to share their data with them, we could get a situation where financial services firms lose access to their clients.

“They face the risk of being marginalized and becoming just product providers.”

Schmitz said most of the banks and insurers he’s spoken with recently are looking to go on the offensive and aim to capitalize on the new sources of customer data available to them. The potential rewards are likely to be substantial.

Want to keep reading?

Create a web account to get access to more insights

Related news & insights

Digital Reinvention
14/06/2024 Interview

NewTech Friday: Vespia – Helping businesses stay compliant with regulations

Julia Ront, Founder and CEO of Vespia, tells Qorus’ Boris Plantier about the story behind her pioneering AI business verification...

ESG
13/06/2024 News

BIS and MAS unveil blueprint for climate risk platform

This initiative, known as Project Viridis, was developed at the BIS Innovation Hub Centre in Singapore.

ESG
12/06/2024 Video

Setle + KBC: Empowering sustainable home renovations

Thibaut Nivelles, Founder of Setle, and Peter van Hees, Innovation Manager of the Ecosystems team at KBC, discuss their successful...

SME Banking
11/06/2024 News

HSBC UK and Ember launch financial tool to boost small business growth

HSBC UK, in partnership with Ember, has introduced My Business Finances, an innovative tool designed to help small businesses better...

Digital Reinvention
10/06/2024 Article

Qorus Innovation Radars: Showcasing the best of the innovation awards

These in-depth pieces showcase the winning innovations from our competitions, featuring both written content and videos.

Insurance
06/06/2024 Article

Qorus announce winners of its ninth insurance innovation awards

Qorus, a global association for retail financial institutions today announced the winners of 2024 Qorus Innovation in Insurance Awards during...

Digital Reinvention
06/06/2024 Study

Innovation Radar: Innovation in Insurance Awards winners 2024

The best of the Qorus Innovation in Insurance Awards 2024 in text and video.

Insurance
06/06/2024 News

The Baldwin Group launches API-connected underwriting platform Cyber Navigator

The Baldwin Group, an independent insurance distribution firm, has launched Cyber Navigator, its first in-house digital placement platform, in collaboration...