Issue link: https://recursos.axway.com/i/1321495
51 Open Banking APIs State of the Market Report 2020 MACRO-ECONOMIC ISSUES MARKET ISSUES COVID-19 Long-Term Socio-Economic Impacts Climate Crisis Neobanks Fintech Tech Giant Concentration of Power Alternative banking as a service platform Open finance players offering more embedded services Outdated legacy infrastructure Organizational skills and capabilities Platform mindset BANK ISSUES KEY CHALLENGES FACING BANKS Finally, open banking regulatory changes have not been the seismic shift that some predicted. In several geographic markets, including in some European countries, banks have collaborated to neutralize the competitive risk that open banking may bring. In countries like Belgium 18 , for example, banks have created new obstacles for third parties seeking to integrate open banking so that fintech solutions are cumbersome for end customers. Despite the European Banking Authority 19 identifying the obstacles that banks must lift in the open banking regulatory environment, there seems to be little enforceability, allowing several banks to avoid responding to known issues for fintech. MEANWHILE, 2020 HAS BROUGHT NEW THREATS TO BANKS While it may appear that some threats - ones that seemed imminently on the horizon just eighteen months ago - are now nullified, new threats in the digital economy are becoming clearer. Today's threats to banks include the longer term economic impacts of COVID-19, the introduction of open finance systems, and the emerging climate crisis. Retail banking profits often require a regular supply of fairly low-risk loans to be made available to consumers at an interest rate that raises money for the banks. COVID-19 has reduced consumer lending demand, and has also made some consumers a higher risk for loans due to a more volatile employment market in a globally recessing economy. Banks also require ongoing customers in the small and medium enterprise (SME) market. These customers transact regularly, bringing in transaction processing fees, have multiple accounts, require cashflow and lending services, and buy insurance and other allied products from a full service bank.