20 June 2019
How Open Banking will change client interaction
On June 7 Niels van Daatselaar, CEO of Easytrade, shared his vision on Open Banking and client interaction at the Amsterdam Fintech Forum. This is what he had to say:
Wholesale banking is on the verge of a dramatic change
The banking landscape has been changing rapidly in the past couple of years. Especially in consumer banking new fintech companies have made their appearance. First as challengers to the status quo, but increasingly as partners seeking collaboration with major banks. Like in China with WeChat, a competition has started in who will be the dominant platform for consumers: the banks or others like large tech firms or fintechs? This development has currently reached wholesale banking.
Open banking will change how banks interact with corporates
PSD2 and ISO20022 will create new messaging standards and access to accounts and data from different institutions. Easytrade has met more than 300 corporates during the last three years and learned that for better FX management can be done when hedging is combined with payments and liquidity management Open banking allows these companies to manage cash across multiple banks more easily and instantly. For banks this means that collaborations with other banks and fintechs will become the new norm.
Banks need to focus more on consultative sales
Besides messaging standard, platforms and API’s banks need to invest in their front office. The open banking landscape will be more open and digital and the front office need to know about that for proper client interaction. The pace of development is still increasing and traditional sales will probably develop into consultative sales. Next to that channel integration will become the new norm in banking: relationship management and specialists are integrated with the bank’s online channels.
Now seems a crucial time for banks to decide how to position for open banking. Having people and a new infrastructure based on openness will be an important factor. If banks are not close enough to their corporate clients, new players will become the client interface and banks will be pushed downwards towards execution. Banks are quite well positioned with their complete product offerings, skilled people and deep pockets. Now is the time to position for this new era.