Open Banking is a philosophy that seeks to liberalize the processing of consumers' banking data, so that it can be processed by third parties with the consent of the data subjects.
Open banking
Its main objective is to promote banking innovation and the development of new products and services, increasing competition in the banking market, facilitating the participation of new players and allowing consumers to exercise control over their own financial data, being able to choose with whom they share their data and for what purpose.
Banks lose their monopoly over their customers' data, and face competition from new entrants, but in return they can increase their value proposition and increase the efficiency of their processes.
Financial institutions are in a position to take advantage of the opportunities offered by Open Banking.
The transformation process should not be seen as just another compliance project, but as an opportunity to compete in the market considering each of the 8 axes that could potentially be applied in the implementation of Open Banking:
- Global Strategy
- Positioning
- Agile innovation
- Partnership strategy
- Trust
- Implementation Entity
- APIs
- Cultural change
The development of Open Banking has different pillars on which it is based to offer financial products and services:
- Analysis of the products and services model: through BaaS it enables companies to offer financial products and services to their customers without the need to be a bank.
- Definition of OpenBanking relationship models: according to the relationship between the provider and enabled entities: API Stores, White Label Platforms and Co-Branding.
- Partner evaluation: E2E (end-to-end) process through which all potential partners analyzed in the scope and strategy of the entities must pass.
- Definition of the qualification architecture with end-to-end vision: strategy and governance, architecture, operating model and deployment.
- Definition of a standardized operating model
- Ensuring compliance with the regulatory context
- Safeguarding customers' financial information and ensuring controlled access
Our business knowledge and experience in various projects related to Open Banking allows us to help organizations formulate their strategic vision and implement the necessary actions to position themselves in the new competitive environment.
To this end, Management Solutions structures its value proposition along 4 axes, depending on the entity's level of maturity:
- Support in the design of business models.
- Support in the planning and definition of the use case for a new business model.
- Support in the implementation of a new Open business model.
- Support in the diagnosis and implementation of measures to ensure adequate regulatory compliance.