Open Banking-Journey to Embark upon

Open banking is major digital transformation initiative which encompasses opening of banking services and data for consumption to third parties and internal consumption. With new terms to hear on daily basis like Neo Bank, Challenge Banks, Open Banks; relevance of Open Banking has never been serious as it is today…

But is this limited to Banking, may not be.. it is extending to other segments such as Insurance, Wealth and to all other businesses which can adopt and build API enabled platform approach to business…

Open banking is revolutionizing Financial services and taking banking beyond banks. In this ecosystem, banks (as well wealth firms, insurance firms, NBFCs etc) will have to learn to collaborate with external players through Open Banking Framework. There is a gap in the understanding of Open Banking across the ecosystem and this program has been created to bridge the gap.

Open Banking is not technology project but a business initiative about building an new ecosystem to build new products, new service delivery mechanism as well new revenue stream

Key to build this ecosystem is to think beyond boundaries and technology makes it possible; yes equally important is have balance of data privacy, security, compliance through better API governance framework. critical components to build Open Banking ecosystem covers at…

Factors to be considered to build Open Banking/ Platform approach to business are:

  • Understand your own technology landscape and how to create Open APIs environment
  • Build Proper Open Banking / API Strategy as it is not one initiative game but  a series of planned initiatives to tap full benefits of Open APIs
  • Put thoughts on business models you would like to create ( as it opens up business to opt for B2B2C or B2B2B or B+B2C and other combinations in stead of straight business models like B2C or B2b
  • Build business models through selection of business segments, customer segments to target
  • Define & select monetization models (direct or indirect)
  • Pick up right set of API management tools
  • Build right governance framework to manage risks

At The Digital Fifth, We work with Banks/FIs as well as Startups to help them into building Open Banking Framework and strategy.

Shashank Shekhar

Head of Consulting

The Digital Fifth

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