New regulation aimed at opening up payments in Europe and the UK is creating a massive opportunity for banks around the world to improve their relevance, their business models and their revenues. So why are so few banks taking the opportunity to create real competitive advantage on the back of open payments regulation?
As a sector, we spend a lot of time talking about the relevance of banks. We fret about customer loyalty. And we worry constantly about our competitor's ability to take away our hard-won customers. We spend hours talking about the need for transformation; the drive for customer-centricity; the imperative for innovation. And we talk about priorities, such as improving customer focus and implementing disruptive technologies. So it is somewhat surprising that few (if any) traditional banks have yet recognized the massive change - and opportunity - that is being create by new open payments and open banking regulation in Europe and the United Kingdom. In fact, we believe that open payments regulation may offer banks around the world an unprecedented opportunity to create a significant competitive advantage in their markets and to reestablish relevance with their customers.