The seven highly effective strategies to survive in the open banking world

While open banking is expected to accelerate the pace of disruption and has brought a wealth of new opportunities for banks to better understand their customers and offer value-added services, changing customer behaviour and increased competitive offerings by new entrants are pushing them to look beyond their traditional territory. Embracing application programming interfaces (APIs) that enable them to plug-and-play in the digital business ecosystem is only one of the many ways in which banks can compete. This paper discusses, identifies and illustrates some of the most common strategies and business model archetypes banks can adopt to move beyond the required APIs and remain relevant in the years to come. The different business models portrayed in this paper encourage banks to consider the following strategies: the augment model, the migrate model, the platform model, the greenfield model, the marketplace model, the merger and acquisition and the banking-as-a-service model. Every bank will need to question its identity and central focus to select its most suitable strategy.