Temenos, a company that produces software for banks, today published a new study entitled “Open Banking: revolution or evolution?” to understand how the banking market is evolving.
According to the research, which surveyed 300 managers from major banks around the world, 45% of banks want to become more digital and a third 29% already have strategies in place to implement open banking initiatives, i.e. the use of apps and APIs that make it possible to access banks at any time.
Kanika Hope, Chief Strategy Officer at Temenos, explained:
“Open banking is lowering barriers to entry and breaking the traditional banking value chain. It is forcing banks to rethink their business models and decide whether they want to be manufacturers or distributors of financial products or both.”
Temenos AG, listed on the stock exchange under the ticker TEMN, works with more than 3,000 banks, which rely on their services to process the daily transactions of their financial institutions, interacting with 1.2 billion customers.
Banks and the Covid-19 pandemic
According to the report, this process of digitisation of financial services has been conditioned by Coronavirus, as more and more people are refraining from using cash or going to bank branches and leaving their homes.
In this process, the British banks have the upper hand, with open banking services from which everyone could take inspiration and with ad hoc regulations that favour online banking.
Among other things, the report explains how open banking can make it easier to manage customer data.
John Broxis, Managing Director of Open Banking Europe, explained:
“Opening up banking isn’t enough unless you can prove to your customer base the certainty of how their data is going to be treated, certainty about refund periods and reconciliation information, or certainty about what happens if you do something wrong.”