Over time, banks and Fintechs have built upon their shared interest. The relationship between them has evolved, and now both are working to integrate the power of customer insight and fintech innovations together. This is why the concept of Open Banking makes so much sense. Open sourcing Application Programming Interfaces (APIs) will help create newer business models and support innovation simultaneously. Alok Tayal, Global Head of Sales & Strategy at Phronesis Partners, said, “Open Banking APIs augment the attractiveness of a bank and empower them to catch-up with the sporadic demands of existing clients as well as appeal to potential customers. These APIs can also assist in a distinctive way to enhance customer engagement and attend to customer needs in a guarded and agile method.” Competitors work real hard to differentiate their products in the market. However, open sourcing can help innovators connect different projects together to create a completely new product. In this way, open banking can quite possibly lead to Interoperability. Interoperability is particularly tied with payments and thus blockchain. For advancement of technologies such as Blockchain or Distributed Ledger Technology (DLT), various groups have been formed. These groups, popularly known as Consortiums, have attracted a lot of attention from traditional banking & financial institutions. Going forward, we will discuss these major trends that are set to shape the future of financial services.
