What you need to know: The willingness, understanding, and perception of the banking industry to try open banking has increased. Open banking no longer looks like a threat to the industry but an opportunity, and banks are investing heavily in APIs now. IT renovation with digital channels investments is essential to enhance user experience meaningfully. Bankers see retention of customer loyalty as their top challenge. Fintechs and new banks are no longer threats. Large established banks are the strongest threat because the can collaborate with fintech firms and have easy access to capital.

Why it is important: Technology platforms, challenger banks, and fintech firms can provide the digital customer a premium experience. As such, the banking industry wants to learn or collaborate with them.

Want to read more? Read The Financial Brand here.