Banks should embrace the open banking ecosystem: IBM

Banks may currently hold a privileged position in the market, but the real opportunity for them from open banking is to start out in an ecosystem that allows them to provide new and better services to their customer base.

That’s the view of Mark Allaby, Managing Partner, Financial Services Sector, Australia and New Zealand at IBM who says this plenty of evidence from the European experience to suggest this is a very plausible thing for them to do.

“Now, absent an open banking or speedier type regime the banks would have to build the ecosystems themselves. But the reality is building private ecosystems takes time, its expensive, and every bank is trying to play the same game so you would end up with a lot of duplication.”

Instead, the Consumer Data Right underpinning open banking offers the banks benefits, he says.

“It creates a model whereby the industry has a shared infrastructure and a level playing field. But because of the perceived upside to the fintech I think it will actually spur on innovation [by the banks]. They are very well-positioned because they do know an awful lot about that customer.”

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Source: Banks should embrace the open banking ecosystem: IBM – Which-50