Open Business

Open Business


The interconnected business

Open banking—a platform-based business approach—could revolutionize how banks generate value. With increasing pressures from regulations and competitors, open banking offers leading banks the opportunity to expose data, algorithms and processes through application programming interfaces (APIs) and create new revenue streams, like today’s successful digital giants.

Banks are at risk if they fail to address open banking. They could miss out on platform-based business models and the strategies they enable. And they could fail to meet consumer demands for seamless digital experiences.

Open banking could make all the difference to banks’ digital transformation programs.



Become an open bank

Being an open bank means operating like a platform company, with a business model that connects people and processes with assets and a technology infrastructure to manage internal and external users’ interactions.

Banks need to collaborate holistically from the outset and split the bank into two different organizations. Four digital business models can help banks implement the industry vision of open banking:

Utility provider
Banks seeking minimum compliance with PSD2 risk a loss in volumes and the quality of customer interactions.

Digital relationship manager
Banks can tap into external innovation through data and logic exposed through third-party APIs to digitize the customer experience, enhance loyalty and increase share of wallet.

Digital category killer
Internal APIs enable banks to increase business agility, reducing time-to-market by delivering new capabilities faster.

Open platform player
Banks consume APIs from multiple organizations to create a service that can then be resold by others.


Customer differentiation

Banks must identify the business goals that will drive API creation, consumption or both as they seek to offer differentiated services to their customers. To do so, banks need to:

  • Design engaging API experiences that appeal to developers through user-friendly developer sites, enhanced self-service capabilities, and good API documentation and testing

  • Develop new operating models to take into account organizational structures that blend together product development and IT operations.

  • Adopt a new mind-set and culture with strong C-suite support backed by a sound mix of different layers of knowledge and expertise.

  • Create new business processes to manage partner ecosystems effectively.



By James Vogtle, Geoffroy Descamps, Jonathan Magder and Peter McElwaine-Johnn

Digital disruption opens the door for banks to orchestrate ecosystems of home-buying services.

First-time homebuyers want more than a mortgage. They want someone to guide them through the home-buying process and make the transition to homeownership easy and convenient. Banks are uniquely positioned to help.

Becoming that provider requires lenders to understand homebuyers’ needs—from legal counsel to home renovation expertise. With those insights, they can orchestrate a set of home-buying services that differentiate the customer experience, attract more homebuyers, and open up new revenue streams. With this value proposition, ecosystem participation, digital investments, and the speed with which they stake their claims will set the winners apart.



Click here to download the full article. Mortgage lending is on the move. This opens a new window.

Digital advances are making it easy for non-banks to enter the mortgage lending space. And loan customers—who are generally dissatisfied with traditional banking models—are clearly interested in what these upstarts have to offer. Accenture Strategy research found that:

  • Only 24% of banking customers believe their banks are differentiated in terms of services and offers

  • Approximately 70% shop around for better deals

  • 31% of consumers would consider purchasing banking services from an online provider, such as Google or Amazon

There is an untapped opportunity for banks, however. Our research confirms that 48% of consumers want banks to offer non-banking products and services related to the purchase of a new house. By establishing digital ecosystems of home-buying and living service partners, banks can fend off their competitors, win market share and own the next frontier of service, convenience and profitability in the banking industry.

“1/3 of customers would buy banking services from a digital provider. Are the days of traditional banks numbered?”

Tweet This >