Incumbents tap API-based open banking and other tools to catch up with digital advances.
A compelling focus on digital transformation paired with an increasing consideration for alternative operating models and assessing emerging technologies to achieve a wide range of benefits is reshaping the financial services ecosystem.
Specifically, open banking and other market disruptions are transforming the way incumbents interact with customers and the overall ecosystem. Open banking enables our clients to use APIs that enable third-party developers to build applications and services around the financial institution.
Up until 2019, most banks had made some investments in digital banking, but few had defined digital banking as a core offering. The onset of COVID-19 has been a wake-up call for most banks that brought several realizations with it – money is information and should get managed digitally end-to-end. However, many banks recognized they couldn’t do so.
Evolving disruptions in the banking ecosystem are rapidly changing the playing field. Those disruptions include the emergence of app-based “challenger banks” like N26 and Monzo, prominent FAANG (Facebook, Amazon, Apple, Netflix and Google) majors making the move into finance, increasing interest in digital banking licenses worldwide, the rapid proliferation of fintech companies creating cutting-edge products and increasing bank-fintech partnerships.
We at Iris have worked with several leading international financial service sector firms, helping build customized solutions in complex environments. We have also been associated with a wide gamut of companies, from leading technology companies that provide packaged software solutions to financial services firms. Focus and specialization are the key to our success in the financial services industry.