Issue link: https://recursos.axway.com/i/1321495
58 Open Banking APIs State of the Market Report 2020 CONCLUSION 2020 has fundamentally shifted the goals and digital approaches of all industry. To date, banks have been gradually reorienting towards digitization and open banking, but now this has become an imperative and banks must accelerate their actions to support customers (individuals and households, small and medium businesses, and large enterprises) that need mobile and internet access to their finances from now on. Customers of all types are seeking seamless, integrated solutions that link their financial services to their day-to-day activities across any industry area or market. For banks to move forward with open banking, banks can next focus on either internal leadership or a partnership focus. By following an internal leadership path, the goal is to open APIs that can be revenue earning to an existing bank customer base. This is most suited to banks with a large enterprise or medium-sized enterprise customer base, where customers may be seeking to integrate a bank's open APIs into their workflows. It also gives rise to banking-as-a-service value proposition where existing or new enterprise customers are given the tools to offer credit card and other services to their own customer base, backed by the underlying bank. By following a partnership-focus path, the goal is to demonstrate the value of opening APIs and offering integrated financial services to customers via open APIs. Here, it is best to start by working with fintech that are not direct competitors with a bank. Small and medium business customers who need fintech and business services integrated with their bank accounts should also be a key priority group. This gives a bank's API team the opportunity to prove that customers maintain their relationship with the bank when they have access to a range of external services, overcoming the bank cultural fear of losing customers when opening APIs. In both cases, banks must facilitate leadership and internal team discussions to encourage adoption of new business models. This will help prepare a bank for future open banking and open finance models in which the bank shares revenue with external stakeholders that also contribute value to the customer journey. INTERNAL LEADERSHIP PARTNERSHIP FOCUS Draw on insights into customer transactions and current customer service demands: This will help identify key areas where customers will require APIs. These may be either internal, partner, or open APIs. Identify third parties with fintech offerings that are not in direct competition and look to build a marketplace where partner providers can offer their services via APIs to the bank's customer base. For open APIs, look at transaction volume of API calls to help identify the most meaningful use cases and most important external partners. Ensure there is a strong marketplace model for offering integrated services to small and medium enterprises and look to build relevant partnerships in areas such as cashflow optimization and lending risk. Use these insights and metrics to identify opportunities to bundle premium API products that can have pricing models and market to existing customers Measure the customer lifetime value of bank customers that use at least one service integrated with their bank account. Compare with lifetime value and customer attrition of those without an integration. Begin (or continue) line of business and whole enterprise discussions on new business models that will match an open banking API infrastructure model.