??? Why Are Banks Sleeping on Open Banking?

Today we're diving into the ongoing debate about legacy banks and its bare minimum compliance efforts to digital transformation and open banking.

Why are banks lagging? How will this affect their revenue as they leave the competition stage for fintechs?

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??? Why Are Banks Sleeping on Open Banking?

I get that change is hard, especially for big, traditional banks that have been doing things a certain way for decades. But when it comes to open banking, their foot-dragging looks like signing their own death warrant.

Open banking is happening, whether banks like it or not. And the ones that are still having doubts, without really embracing the opportunities it offers, are going to get left in the dust by giant fintechs and digital challengers.

So for banks to really stay alive and relevant to the digital scene, they need to embrace an API-first mindset, partner up with the right players, and be willing to adapt to cloud-native architectures.

Only then, we can say that banks are giving up on their outdated systems and opening up for those massive revenue opportunities.?

Background

• Open banking started in Europe in 2018 (PSD2) and is now global.
• It lets banks share financial data securely with third parties if customers agree.
• It aims to make banking more personalised, transparent, and convenient.
• For banks, open banking means better engagement, keeping up with emerging tech, and managing risks better.

Today

• Many banks are starting to use open banking, but they mostly focus on minimum compliance requirements.?
• Challenges include high competition from fintechs, risks of commoditisation, and updating old systems.
• Banks need to shift from being API publishers to API consumers, make the best out of partnerships and become data-centric.
• Good API management, data control, and clear rules for sharing data are important for Open banking implementation?
• Solutions like Fiorano's open banking Accelerator help banks use open banking faster.

What's Next

• Open banking is going to keep growing, leading to new models like BaaS and Embedded Finance.
• BaaS lets banks share their services with other businesses through APIs, which means more revenue and ecosystem expansion.
• Embedded finance means bringing banking into everyday things like shopping apps, reaching more people and making banking easier.
• To succeed, banks need to focus on APIs, use the cloud more, and engage in relevant partnerships.
• Fiorano's Unified Banking API Platform helps banks use APIs better and change how they do business.

Why do you think banks are hesitant on really opening up?

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?? QNB introduces Qatar’s first Open Banking API for corporate clients, marking a significant milestone in digital corporate banking.

?? AI set to transform open banking with 74% of banks showing collaboration potential . However, 75% aren't operationally ready.

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Payments Top Trends 2024: This report reveals that sectors such as healthcare, finance, insurance, and retail are poised to experience huge benefits from advancements in payments tech. But doing so comes with its ethical considerations regarding data privacy, deep fakes, and bias in payment systems as technology progresses.?Click here to read the full report.

This week on Couchonomics with Arjun, join me as I welcome Nick Philpott, Co-Founder and Head of Partnerships at Zodia Markets by Standard Chartered & OSL. We had a very interesting conversation around bitcoin halving, stablecoins, virtual-assets regulations, and tokenisation of real-world assets, among other topics. Nick gave us insights into Zodia Markets' role as an OTC crypto brokerage serving institutional clients and their partnership with Standard Chartered. Tune in here for an insightful conversation on crypto investment.

Now, a quick break for your wellness. Chief Wellness Officer at FAB Diego Carrete is on a mission to help executives get fit, increase their energy, and live longer.

Today, he answers the question of how to know if there's something wrong with your metabolism.

Hello there,

I really need to confess something. I avoid social gatherings because, inevitably, when people discover what I do for a living, they always want to discuss the topic I dread the most: nutrition.

Nutrition and diet are incredibly complex topics that often get oversimplified. While fad diets provide easy-to-follow lists, they fail to recognize the intricate relationship between the molecules in food and how each individual's body reacts to them.

My aim has always been to help individuals understand what dietary approach suits their unique body and goals – an approach they can adhere to sustainably.

When assessing your overall nutritional status, I consider three key states:

1. Are you undernourished or over-nourished?
2. Are you under-muscled?
3. Are you metabolically healthy?

This third state, metabolic health, is crucial. If you have two or more of the following conditions, you’re likely suffering from metabolic syndrome:

• High blood pressure (>130/85 mmHg)
• High triglycerides (>150 mg/dL)
• Low HDL cholesterol (<40 mg/dL in men or <50 mg/dL in women)
• Central adiposity (waist circumference >40 inches in men or >35 inches in women)
• Elevated fasting glucose (≥100 mg/dL)

Identifying and addressing metabolic syndrome is vital, as it increases the risk of heart disease, stroke, and type 2 diabetes.

If you found this helpful, feel free to share it with your friends and loved ones.

See you next week, when we'll discuss 5 nutrition rules to help you feel energetic all day long.

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