Across all industries, organizations are seeing traditional value chains being disrupted: how products and services are delivered is changing as new entrants create a wedge between incumbents and their customers. Nowhere is this felt more keenly than Banking, where FinTechs are disintermediating banks across the value chain in areas as diverse as lending and payments. And it is APIs, offering Banking as a Service, one Service at a time, that are driving this change.
How then can banks respond? In one of the most highly regulated industries, and consequently one that is stereotypically more resistant to change, it is paradoxically new regulation that may be the spur for banks to accelerate their innovation efforts. Forthcoming legislation such as PSD2 and MiFID II can be seen as compliance overhead, or alternatively, as driving a broader mandate for change.
Take PSD2. On one hand, the regulatory requirement to provide third party access to customer accounts (XS2A) in support of direct payment transactions with third parties can be seen as a compliance burden or, on the other, as an opportunity for a bank to critically consider its role in the payments value chain. The API to facilitate this information can be seen as an opportunity to open up new distribution channels and allow banks to explore new products and services. Also, the APIs serving the PSD2 XS2A requirement, can and should be the same APIs that serve the bank’s other channels such as the web and mobile platforms, thus driving greater operational agility and lowering cost.
Join our webinar on 2/28 at 10a EST where, together with Cap Gemini and AWS, we will explore these topics in further detail and examine how within this hyper-competitive business environment, IT professionals should respond. In particular, we’ll cover how the financial services value chain has changed, and what that means for information technology leaders; how banks can leverage compliance obligations, like PSD2, as an opportunity to move towards Open Banking and why in this journey, existing development and delivery approaches are no longer fit for purpose.
Webinar Date: Tuesday, February 28, 2017
Time: 07:00 am – 08:00 am PST