The Banking Executive Magazine - Issue 150, June 2021

Open Banking OPEN BANKING ECOSYSTEM 0pen banking is heavily shaped by the digital ecosystem. While regula- tory changes may act as a catalyst for open banking, the growth of digital ecosystems are the primary driving force behind the open banking para- digm. According to the World Eco- nomic Forum, the digital ecosystem and platform are behind the eco- nomic transformation. An ecosystem helps in generating product and serv- ice innovations. In open banking the digital ecosys- tem include customers, partners and third-party services, and regulators. A successful open banking digital ecosystem is often based on a core engine and a business model. FUTURE PROSPECT Open Banking is becoming a global revenue opportunity. PwC forecasts an approximate USD$10bn global revenue opportunity from open banking by 2022 when 64% of adults are expected to be adopters. The Fintech open series forecast the following development in open banking: • Increased investment in the infra- structure for open API access. • Increased investment in fintechs that are looking to exploit banks customer data and create some form of value from it. • Enhancement of digital banking channels. • Emergence of new business mod- els delivering a plethora of data- driven innovations. • The banks shift from traditional services towards analysing cus- tomer data in order to provide more valuable services to cus- tomers and merchants. • Bank will be offering services bought in from third parties. This will widen bank services. • There will be increased consumer focus on data protection driving middleware services. • There will be growing consumer the BANKING EXECUTIVE 16 ISSUE 150 JUNE 2021