The paper, Producers, Distributors, Aggregators: Strategic Options for Banks in the Post-PSD2 Age, identifies and offers insight into the range of roles that banks can play in the emerging open banking ecosystem following the advent of PSD2.
The Open Banking Expert Group, co-chaired by Jordi Guaus, CaixaBank, Mario Brkic, Erste Group, Luis Rodriguez, Strands and Oscar Sala, Strands, was formed in 2017 to establish best practice in defining an open banking strategy.
Some banks may choose to take a straight compliance approach to PSD2 and retain their existing role. There are opportunities, though, to explore new approaches, said Brkic. Banks can choose to be ‘distributors’, leveraging third-party services to upgrade their product portfolio. They can also be ‘producers’ and develop their own services to be distributed by third parties, extending the reach of their core products. Banks can also leverage and capitalise on easier access to data by becoming information aggregators or providers.
Given the various strategic options available to banks, the biggest challenge posed by open banking is not technological or regulatory, but organisational. Business models, commercial strategies and operational practices must evolve. It is difficult, however, to affect instantaneous change across complex organisations.
Understanding the organisational challenges posed by PSD2, and identifying effective strategies to combat them, is critical for banks that want to establish early leadership in open banking, adds Elina Mattila, Executive Director at Mobey Forum. By clearly identifying potential roles and providing concrete examples of successful implementations, this report will help banks better understand the options available and the approaches they can pursue, enabling them to get ahead in the new API banking economy.
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