One site to rule them all.
This is the banking version of the Tolkien quest for the one ring that rules them all.
Call this open banking and remember that phrase. It’s about to get much buzzier and louder over the next year as open banking transforms how US financial institutions interact.
Scott Anderson, brand evangelist at Diebold Nixdorf, sat down at the company’s DN Intersect event to tell us why open banking – a big issue in Europe – is heading your way.
Imagine one site where your member sees everything financial. Inside the credit union and outside. Imagine a site where the consumer can decide what to use to pay for this purchase in this moment.
How cool is that?
It’s also potentially frightening to financial institutions. The institution ceases to be a walled garden and becomes instead an open transit point. Won’t consumers flee?
Why should they? If their needs are getting served.
In many ways Anderson is optimistic about the impacts of open banking – which definitely is coming our way – on smaller FIs such as credit unions.
One hitch however. How do credit unions get enough data to play meaningfully in this universe? Anderson sees credit unions working in alliances with fintechs – CUSOs perhaps – to create an even playing field with big banks when it comes to open banking.
Just maybe it’s the biggest FIs that have the most to lose in an open banking universe.
Think on that and think about how to win your institution’s share.
This podcast is one of a group of four recorded on site at the Diebold Nixdorf DN Intersect conference in Las Vegas, September 2019.
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