Yes to Open Banking / No to Open banking

Yes to Open Banking / No to Open Banking

In a recent post here at GDS Modellica, we talked about the “scant favour” that the banking sector would be doing itself if, in an attempt to move with the times, it stepped on the accelerator and left existing customers stranded by the roadside. A good part of banking customers are still attached to more traditional ways of banking and communicating with their financial service providers, and they can’t be left to simply fend for themselves.

A recent study by Mambu has provided some data on the matter, revealing that, whilst open banking is growing all the time, more than half of banking customers (52%) have still never heard of it. Despite all the advantages that open banking has to offer, there is a long way to go before it becomes the norm for customers.

However, this figure shouldn’t be a reason to feel pessimistic. Once through the “Early adopters” phase, we will be fully submerged in the “Early majority” phase (see The 5 Customer Segments of Technological Adoption). The current situation simply presents countless possibilities for moulding the market to suit customers’ real demands, create innovative and personalised offers and explore new business opportunities.

The ease of use of new technology, coupled with the digital transformation of today’s society, provides us with growing amounts of data that, if used intelligently and wisely, can become a continuous source of opportunities to generate new business and get ahead of the competition. And this is something that is well within the grasp of any service provider that is ready to accept the received wisdom that the key to success is in focusing on the customer experience, not the corporate experience.

Once again at GDS Modellica, we have put together an infographic that reveals the most important insights from the Mambu report so that anyone can understand them at a simple glance. Here is what the customer attitude towards open banking currently looks like today.