New Survey Findings: Open Banking is a Game Changer for Millennials

 New Survey Findings: Open Banking is a Game Changer for Millennials
13.04.2017 10:45 am

New Survey Findings: Open Banking is a Game Changer for Millennials


According to the survey, most bankers believe that open banking will have a dramatic effect on the market structure and competitive environment for consumer banking services. Nearly 90% believe that Millennials will be using banking services from a variety of providers that are accessed through a single aggregation portal, significantly impacting the relationship banks currently enjoy with their customers.

Earnix, a leading provider of predictive analytics solutions for the financial services industry, today announced results of a survey conducted in January of 300 UK and European bankers focused on how open (API) banking will affect their business, and their ideas on how they will need to adapt to the new competitive landscape.

Banks Will Need to Overhaul Their Pricing and Value Models

Open banking is part of the Payments Services Directive 2 (PSD2) that comes into effect in January 2018. It requires financial institutions to make customer data available to third parties, enabling customers to construct hybrid services from a variety of providers. 72% of the bankers surveyed think that this will significantly diminish their existing customer relationships, making it more difficult to cross-sell financial services. Given this, 75% think that their bank will need to overhaul their pricing and value models to maintain market share.

Analytics and Machine Learning Will be the Most Powerful Tools to Win Customers

Bankers almost unanimously (93%) believe that open banking will bring a deluge of new customer data that will revolutionize how analytics will be used to create more customer-centric financial services. 73% believe that predicative analytics and machine learning will become the most powerful means through which to win bank customers over the next five years.

Commenting on the survey finding, Earnix CEO Udi Ziv said: “Open banking is a game-changer for the financial services industry. Traditional banking services will be redefined, becoming more personalized and customer-centric. We believe that incumbent banks have a unique opportunity to excel in this new environment, and we are helping them deploy advanced analytics that leverages the gold mine of customer data they already have.”


Related News

Avaloq Strengthens Its Implementation Capabilities With a New Partnership and a Status Upgrade

Avaloq, a leader in digital banking solutions announces Confinale’s upgrade to “Premium Implementation Partner” status and introduces Infinogy... Read more »

Neo Launches Multi-Currency Account for SMEs

Neo, the treasury management, payments and FX fintech, is launching a new international multi-currency account service for small and medium-sized enterprises (... Read more »

ClearBank Becomes First Clearing Bank to Offer Multi-Currency Bank Accounts via API

ClearBank, the cloud-based clearing bank, has become the first clearing bank to offer multi-... Read more »

Paymentology and Thought Machine Collaborate to Create Digital Banking Platform

Paymentology, the UK cloud-native payment processor, is partnering with digital banking platform Thought Machine, to bring rapid integration... Read more »

Commerzbank Issues the Second Own Green Bond €500 Million Worth

Commerzbank AG has today very successfully issued another Green Bond with an issuance volume of €500 million. It is the Bank’s second own Green Bond after the... Read more »

FT Survey: 78% Say UK Banks Have “Surprised Themselves” With Their Adaptability During COVID-19

Appian (NASDAQ: APPN) today published survey results examining the response of the UK banking sector to the coronavirus pandemic, revealing that nearly three-... Read more »

Free Newsletter Sign-up
+44 (0) 208 819 32 53 +44 (0) 173 261 71 47
Download Our Mobile App
Financial It Youtube channel