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2018 was yet again another year of revolution as far as the Banking and Financial Services industry is concerned. The key trigger was the Open Banking initiative. The Competitions and Markets Authority of the UK set up Open Banking Limited with two clear mandates - promote competition and promote innovation in the Banking and Financial Services space. Of all the regulations intended to put customers at the heart of it, this by far is the most far - fetched in my view as it empowers the customers to choose from the best available options that meet and exceeds their financial needs. The benefiting customers, of course, fall into all segments.
as the intent of open banking is not specific to a particular segment, but the immediate and the most benefited will be the retail customers and the Small and Medium Enterprises (SMEs).
If traditional Banks wish to thrive in an Open Banking regime, they need to unlearn and adapt to an ecosystem of the marketplace collaboration and orchestration. So, let’s get ready to buy a product manufactured by Bank A, sold to us by Third Party B and serviced by yet another Third Party C, all in harmony. It is quite certain that we have only addressed a sliver of the change that Open Banking is set to bring to the world through the lenses of 3Ps and Customer Acquisition paradigm. The possibilities are enormous and customers are the prime.
For the Banks to become Monarchs, they have to act NOW!