Open banking has arrived, and it’s transforming the UK’s banking landscape – next up could be the world. Regulatory efforts in the UK are transforming retail banking, reshaping incumbents’ relationships with customers, and easing entry for fintechs.
Regulators across every continent are responding with actions of their own. Underpinning open banking initiatives is the idea that ownership of transactional data belongs to consumers instead of incumbent financial institutions.
The implications of this change for established lenders in the UK are significant. For those that act, open banking presents substantial revenue-generating opportunities.
But the consequences of inaction are even more severe: Business Insider Intelligence estimates that by 2024, £6.5 billion ($8.4 billion) of UK incumbents’ revenues will be under threat of being scooped up by forward-thinking companies like fintechs and neobanks. Yet even through the financial incentives to act are clear, many incumbents are struggling to determine the best path to monetization. In fact, some aren’t even sure what their options are.
In The Monetization of Open Banking report, Business Insider Intelligence identifies monetization strategies incumbents have at their disposal, describes how they can determine the best approach for their specific needs, and outlines actionable steps they need to make their chosen open banking initiative successful.
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