EMEA BANKING
Leverage existing strengths to secure market position Established retail banks now face the new challenge of having to regain the privilege of direct contact with customers, requiring a substantial change in business as usual. Increasing legislation may have led to slower developments in recent years, but now is a critical time to switch to a proactive, self-disruptive approach, to have any hope of securing existing market position. To do so, traditional players should build on the unique strengths developed over decades, even centuries of doing business. Whilst it’s true that new market entrants will benefit from the advantages presented by PSD2, they will also have to face intensive compliance issues and regulatory requirements. Banks already have extensive expertise in these areas. Data security, fraud prevention, secure digital identity and confidentiality of personal data are
all core competencies of established financial institutions. Despite the financial crisis, banks also still enjoy a considerable amount of consumer confidence. Carrying these strengths forward is key to survival in this era of change, whilst undergoing digital transformation and ensuring new innovations are deployed at speeds the industry is somewhat unaccustomed to. PSD2 will undoubtedly change the market in the mid and long term. For consumers, there is a lot to look forward to, in the shape of smart new technologies, improved financial product offerings and greater transparency in fees. For banks, FinTechs and the wider technology industry, we are entering the make or break phase in the race to aggregate services and secure access to customers. Banks must focus on exploiting their existing advantages in order to continue to play a role in retail banking.
Andrew Hewitt Director Payment and Data Solutions FIS
Issue 11 | 117