Half believe competitive pressure will force
them to give data-access to third-parties as a service to
customers
TORONTO, Oct. 16, 2017 /CNW/ - All but one of 100
payments executives at large banks said their bank plans to make
major investments in Open Banking initiatives by 2020, according to
the results of a global study by Accenture
(NYSE:ACN).
Open Banking is an emerging service model that allows customers
to share access to their financial data with non-bank third
parties, which can then use that data to provide the customer with
a better banking experience. Banks can also use the Open Banking
platform to offer plug-and-play financial products to third
parties, such as retailers or fintech companies, ultimately
expanding their reach to new customers.
The survey found that nearly two-thirds (63 percent) of banks in
North America believe that
implementing Open Banking is critical to competing with new
entrants – such as fintechs and tech giants – and will help banks
remain relevant, compared to half (51 percent) of executives
surveyed in Europe and two-fifths
(40 percent) in Asia Pacific. In
fact, half (52 percent) of all the bank executives surveyed believe
that they will be forced to implement Open Banking in order to
compete with traditional competitors (i.e. other large banks) that
have invested in digital transformation.
"Unlike banks in Europe where
it is mandated by regulation, those in North America and Asia Pacific have the luxury of deciding if,
how and when they will implement Open Banking, and we expect many
will do so as a way to more easily offer integrated financial
services to customers," said Alan
McIntyre, a senior managing director at Accenture and head
of its Banking practice. "As European banks ready their networks
for compliance, banks across the globe are identifying
opportunities to drive new revenue streams by offering services to
third parties, such as consumer credit checks and identity
management, enabled by Open Banking."
In Europe, Open Banking is
being driven by the Revised Payments Service Directive (PSD2), a
regulation taking effect January 2018
that will enable consumers to share their financial data securely
with banks and third parties, making it possible for them to more
easily transfer funds, compare products and manage their accounts
without their bank's involvement. While Open Banking is a
regulatory requirement in Europe,
market competition is driving North American banks to a high-level
of interest in implementing Open Banking.
According to the study, two-thirds (66 percent) of bank
executives believe that Open Banking will help create new revenue
streams for their organization, and 90 percent expect it to drive
incremental revenue growth of up to 10 percent.
Most bank executives surveyed believe that Open Banking provides
more an opportunity than a threat and makes it easier for consumers
to access their products. However, many also believe that Open
Banking will introduce more interfaces, leading to potential
security and fraud vulnerabilities. Survey findings include:
- More than two-thirds (71 percent) of respondents at European
banks view Open Banking as more an opportunity than a threat,
versus 63 percent in Asia Pacific
and 60 percent in North
America.
- The majority (71 percent) believe Open Banking will make it
easier for customers to access more targeted banking products and
offers.
-
- According to the results of the survey, some banks can already
distribute third-party banking products to consumers with whom they
do not have a primary relationship: 37 percent in North America, 29 percent in Europe and 23 percent in Asia Pacific.
- Half (50 percent) of all respondents, and nearly two-thirds (63
percent) of those in Europe,
believe that implementing Open Banking will increase the level of
risk in the banking.
"Open Banking provides myriad opportunities for banks to
generate new revenues and offer new products; however, it also puts
banks at risk of becoming back-end, transactional players, with
their products and brands buried deep in another transaction,"
continued McIntyre. "Banks have an opportunity to use their trusted
position with consumers to own the customer relationship, and
provide the seamless digital experience customers want and that
Open Banking enables."
Methodology
Accenture Research surveyed 100 payments
executives familiar with Open Banking at large banks globally
(>$5 billion in revenue for banks
in North America, the UK,
Spain, Italy, France
and Germany; >$3 billion in revenue for banks in Asia Pacific, and other European markets) to
determine their appetite and plans for implementing Open Banking.
The online survey was conducted Aug.
8-28, 2017.
About Accenture
Accenture is a leading global
professional services company, providing a broad range of services
and solutions in strategy, consulting, digital, technology and
operations. Combining unmatched experience and specialized skills
across more than 40 industries and all business functions –
underpinned by the world's largest delivery network – Accenture
works at the intersection of business and technology to help
clients improve their performance and create sustainable value for
their stakeholders. With approximately 425,000 people serving
clients in more than 120 countries, Accenture drives innovation to
improve the way the world works and lives. Visit us at
www.accenture.com.
SOURCE Accenture