Business model innovation: The big move towards open banking

As found in last year’s retail bank innovation report, financial institutions are increasingly looking to move to more of an open banking business model, re-prioritizing investment strategies and building third-party partnerships that will drive innovation and customer experiences in the future.

The move away from being a universal player — building digital relationships with all customer segments — is gaining momentum, with the use of application programming interfaces (APIs) now seen as a secure and standardized method to provide consumers more control over how their data is used.

While 60% of organizations considered themselves a ‘universal player’ today, with only 8% saying their business model was being an open banking player, more than 25% of organizations see themselves having an open banking model in 2030. Most of this shift is away from being a universal player — disrupting traditional banking business models forever.