Open banking: Towards platform and modular banking

Yvon Moysan and Margaux Rudnicki
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Yvon Moysan: Yvon Moysan, IÉSEG School of Management, Paris campus Socle de la Grande Arche, France
Margaux Rudnicki: Margaux Rudnicki, Senior Consultant, Initio

Journal of Digital Banking, 2019, vol. 4, issue 2, 131-143

Abstract: PSD2, the second Payment Services Directive, is progressively affecting the European banking sector, creating a favourable environment for a more ambitious open banking system. This major change driver encourages the potential of open banking in the European Union. Banking data is becoming available to third-party players, such as FinTech start-ups or big tech companies. Open banking is both a threat and an opportunity for traditional actors. It will structurally and durably affect the banking sector, favouring new kinds of partnerships and ecosystems. This paper aims to help the reader to: understand the fundamental drivers of the structural change brought about by open banking; have a better vision of how application programming interfaces (APIs) can be used in a competitive market; identify the strategies banks can use to adapt to this new environment; appreciate how the emergence of new entrants is favoured; figure out how these new entrants’ approach can diverge from traditional models; get ready for the challenges facing tomorrow’s banking sector. The examples provided illustrate how new strategies tend to emerge and present a panel of innovative solutions to manage our banking and investing services.

Keywords: API; open banking; digital banking; PSD2; neo-bank; FinTechs (search for similar items in EconPapers)
JEL-codes: E5 G2 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:aza:jdb000:y:2019:v:4:i:2:p:131-143

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