• John Smith, Managing Director, EMEA at Fiserv


• 10.08.2016 10:15 am
Infastructure

“Two years after the start of the investigation into UK’s bank accounts, the CMA’s final report today reveals a strong push for transparency, concluding that banks need to work harder for their customers. One of the most significant changes being recommended is the opening of banking data through the ‘Open Banking Programme’.

So called open APIs could rapidly change competition in the sector, speed-up the revolution of mobile banking and change customers lives for the better. Open APIs could enable banks to offer simple and complex services, normally offered in high street branches or online, through mobile apps. The opening of information will also allow customers to compare deals and shop around for better offers. The analysis made possible via this shared data has the potential to guide the generation of new technologies, services and functionality in financial services as it has in other industries, enabling all banking though a single channel.

Whatever the channel, consumers now want to see their financial services providers no differently to other service-orientated applications that they are familiar with. People are not thinking about financial services, they want to be able to interact with financial services in a way that suits their busy lives, ambitions and plans for the future. People expect these services to integrate seamlessly into their world. The industry has realised this and challenger banks, such as Tandem Bank, are based squarely around helping customers understand their finances and access better services by offering a slick, frictionless and safe experience that reflects the way that consumers will interact with their banks in an ideal world not too far away.

“We are in a vibrant fintech environment, but what must happen is a greater degree of collaboration between banks and expert providers to help them adapt to the demands that such a new reality exert upon their infrastructure. 

“Having said all this, it’s clear that major institutions are taking a shake-up of the industry seriously, and if the CMA’s recommendations begin to be implemented in the near future, the net result can only be good for consumers, who can look forward to better experiences, easier switches and the reassurance that they are getting the most suitable products and the best deal possible.