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Open banking: Towards platform and modular banking

Author

Listed:
  • Moysan, Yvon

    (Yvon Moysan, IÉSEG School of Management, Paris campus Socle de la Grande Arche, France)

  • Rudnicki, Margaux

    (Margaux Rudnicki, Senior Consultant, Initio)

Abstract

PSD2, the second Payment Services Directive, is progressively affecting the European banking sector, creating a favourable environment for a more ambitious open banking system. This major change driver encourages the potential of open banking in the European Union. Banking data is becoming available to third-party players, such as FinTech start-ups or big tech companies. Open banking is both a threat and an opportunity for traditional actors. It will structurally and durably affect the banking sector, favouring new kinds of partnerships and ecosystems. This paper aims to help the reader to: understand the fundamental drivers of the structural change brought about by open banking; have a better vision of how application programming interfaces (APIs) can be used in a competitive market; identify the strategies banks can use to adapt to this new environment; appreciate how the emergence of new entrants is favoured; figure out how these new entrants’ approach can diverge from traditional models; get ready for the challenges facing tomorrow’s banking sector. The examples provided illustrate how new strategies tend to emerge and present a panel of innovative solutions to manage our banking and investing services.

Suggested Citation

  • Moysan, Yvon & Rudnicki, Margaux, 2019. "Open banking: Towards platform and modular banking," Journal of Digital Banking, Henry Stewart Publications, vol. 4(2), pages 131-143, September.
    • Handle: RePEc:aza:jdb000:y:2019:v:4:i:2:p:131-143
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    More about this item

    Keywords

    API; open banking; digital banking; PSD2; neo-bank; FinTechs;
    All these keywords.

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit

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