According to a research report titled ‘The Monetization of Open Banking’ by Business Insider Intelligence, Open Banking services are transforming the UK’s banking landscape and rapidly gaining traction around the world.
In the UK, regulatory efforts are changing retail banking, reshaping incumbents’ relationships with customers and easing entry for FinTech companies, while regulators based across every continent are responding with actions of their own. This change implies significant consequences to established lenders in the UK, where Open Banking delivers considerable revenue stream opportunities.
Open Banking initiatives capitalize on the idea that data involved in transactions is owned by consumers, as opposed to financial institutions.However the consequences of inaction are more acute, where by 2024, £6.5 billion ($8.4 billion) of UK incumbents' revenues will be under threat of being diverted to modern-thinking companies like FinTechs and Neobanks, as per Business Insider Intelligence.
In The Monetization of Open Banking report, BI Intelligence identifies monetization strategies that incumbents have at their disposal, describing how they can pinpoint the best approach for their specific needs and outlining steps they need to take in order to make their chosen open banking initiative successful.
The companies mentioned in this report are: Allied Irish Bank (AIB), Bank of Ireland, Barclays, Danske Bank, HSBC, Lloyds Banking Group, Nationwide, RBS Group, and Santander, Monzo, Starling, ING, Yolt, Fidor and BBVA.
Open Banking, BI Intelligence, Business Insider, Neobanks, Monetization of Open Banking, Allied Irish Bank, AIB, Bank of Ireland, Barclays, Danske Bank, HSBC, Lloyds Banking Group, Nationwide, RBS Group, Santander, Monzo, Starling, ING, Yolt, Fidor, BBVA.