Successful financial institutions understand the importance of providing exceptional customer experiences. The ability to delight customers comes from creating personalized solutions that anticipate a customer’s needs and are available whenever the customer wants. Open banking may provide the perfect opportunity for financial institutions to re-define and prioritize the value they bring to their customers. Open banking is defined as ‘a system that provides a user with a network of financial institutions’ data through the use of application programming interfaces, better known as APIs’1. Forthcoming regulation in the EU, in the form of the revised Payment Services Directive (PSD2)2 is one of the drivers sparking the popularity of open banking. PSD2 is the second Payment Services Directive, designed by the countries of the European Union. The new rules enhance consumer protection and aim to promote the development and use of innovative online and mobile payments. This could represent a significant step towards banking-as-a-platform, as it includes provisions that enable account access by third parties via public APIs.
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