How U.S. institutions can play the open banking game and win

Unlike some industries that have been crushed by disruption, financial institutions are well positioned to partner with fintechs to profit from revolutionizing banking by use of API-powered 'as-a-service' arrangements that leverage their traditional structure and strengths.

Open banking represents an opportunity for financial institutions to co-innovate and collaborate with fintechs to provide their customers with embedded, personalized, and protected banking experiences. Embracing the concept of banking-as-a-service positions banks and credit unions to offer an almost limitless array of differentiated experiences and highly personalized touchpoints that enable consumers to move and manage money when, where and how they choose.

What ‘Open Banking’ Means to U.S. Institutions

Open banking encompasses any strategy by a financial institution to open its APIs (application programming interfaces) to third parties and give those third parties access to data (data-as-a-service) or access to functionality (banking-as-a-service). Purists may want to preserve a distinction between open banking and banking-as-a-service, but they can be seen as a continuum.

This broader definition of open banking increasingly reflects the reality of what’s happening, especially in the U.S. And what really matters is what banks and fintechs are doing when they partner, not what we call it.


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