Ecommerce is now a fact of life. Whether buying groceries with one click on Amazon, or ordering a taxi on your phone with Uber, customers around the world increasingly rely on the convenience of online services.
In the banking sector, innovative services based on open data are cropping up too. New third-party actors like account information service providers (AISPs), which provide consumers with visibility across all their banking accounts via a single app, and payment initiation service providers (PISPs), which offer consumers an easy means of making direct fund transfers for online transactions, are upending the traditional banking landscape.
The bank of tomorrow is the one that not only sees these changes on the horizon, but also adapts to this new environment. Otherwise, customers are more than willing to move on with a financial partner that can provide the services they seek. According to a recent Gemalto poll, 38% of those surveyed would leave their bank if another provider was offering better services or better rates.
of consumers would leave their bank if another provider was offering better services or better rates
OPEN BANKING IS HERE
The revised Payment Service Directive (PSD2) fosters the development of innovative services based on open data in the banking payment landscape. In particular, it aims to encourage the creation of alternative internet payment methods across all common types of devices (e.g. computers, tables and mobile phones) by allowing third-party providers equal access to customer account information and transactional approval. PSD2 specifies that consumers have the right to use any third-party provider for their online banking services. As a result, banks are mandated to provide open API interfaces to allow access to payment account information and payment initiation.