Over the last few months, two important observations have emerged in the discussion about open banking. On the one hand, both banks and non-banks recognise that open banking is the future. However, on the other hand, they also recognise that the main obstacle to open banking is the fact that there simply is no big call from consumers to redefine their relationship with service providers. The market is not mature enough.
And yet it moves, to quote Galileo. The market is still heading in this general direction, although much slower than might be expected given the level of risk, changing regulations and new opportunities brought about by the pandemic. One of the reasons for this slow albeit steady movement is the lack of definition regarding the true potential of open banking.
It seems that, for the time being, the market sees these new possibilities as a brief interruption to normal proceedings, something that adds an extra layer to their experience, and consumers are not yet demanding additional functionalities with regard to their savings, deposits, investments and expenses. What is needed is a ‘value proposal’, something which specifies, in a few points, exactly what benefits the consumer could enjoy, not in the distant future but right now.
In our previous post, we outlined an executive summary of the recent Open Banking report
published by the consulting firm PWC. The report itself contains so much information that we wanted to pause and focus on one specific area: the real uses of open banking. So, based on PWC’s analysis, we have chosen to summarise the key points in an infographic so that our readers can understand everything at a simple glance.
Here are the five most logical value proposals for open banking today.