5. How does this new banking model benefit the bank’s customers? Up to now banks had control over the customers’ data with opening APIs, the control goes back to the consumer as these will need to provide permission for third parties wanting to innovate on a bank’s APIs to access their personal data. Besides that, openness simply is creating transparency, which creates increasing competition and by that a better offer for the customer. Furthermore, technical openness allows us to better integrate banking into the customer’s digital lifestyle, whatever that might look like. 6. Does Open API banking pose any threat for the traditional banks? I don’t see it being a threat for banks in general, I see this more as an opportunity. But yes, banks need to cope with that. The ones that still do not see that challenge will face a tough future. Digitisation and the internet have dramatically changed how consumers are banking, and also their expectations
towards banking products and services. Opening APIs is only shaking up the banking industry, pushing it to accelerate, to change, to adapt and to collaborate in improving existing financial products. 7. Do the banks run a security risk by opening up? Fintechs and third party providers have much to learn from traditional banks, and in return so do the banks. Of course, there will always be fraudulent attempts (as in most industries) but banks have had plenty of time to consider this and implement the necessary precautions before opening their APIs.
8. What is the Fidor history of Open Banking? Who had the idea originally? Honestly, this decision was made out of sheer necessity. As the fintech development accelerated, we needed to overcome our static/closed shop thinking once we decided to tackle that development. The question in those days was: Will we do everything on ourselves, or will we be open? We decided to be open. Technical openness formed the essence of our culturally-open banking concept when creating Fidor. We reflected this vision through our community concept, an open place for people to discuss financial topics. On the technology side, it seemed obvious to take the route of offering open APIs. As innovations get unveiled faster than ever, we believe banks can leverage existing fintechs to remain competitive - you need to be agile and adapt to the customers’ needs
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MONEY MAG // 2.5 PSD2 – towards open banking
institutions, is about trust, collaboration and pushing innovation. 4. What is it that this API banking model enables the banks to do? By January 2018, all financial institutions will have to comply to the new PSD2 regulations to open their APIs. Most banks have already started moving towards this and are preparing to open their APIs. It will be a complete shift for banks, many existing banking products will be disrupted, but for the better 2018 will be an interesting year as we will see many new innovative banking products being launched. Opening their APIs will also push banks to accelerate their processes internally, become more agile so they can innovate faster and continue to compete with other challengers that may emerge.
