FinTech Magazine March 2025 | Page 78

Nicolas de Genot de Nieukerken Traditional banks will always hold the lion ’ s share of consumer trust , and open banking won ’ t change that . It will , however , require banks to make some adaptations in order to remain competitive and cater to their customers ’ evolving financial needs .

Consumers now know that banks are held to higher regulatory standards than their fintech counterparts , meaning that their money and financial data is secure when held by a bank .

Through open banking , traditional banks will be able to better engage with fintechs , sharing permissioned consumer data with them in a secure way that will in turn enable fintechs to develop more intuitive financial offerings .

These bank / fintech partnerships will be critical to banks ’ ability to hold onto their customers while continuing to provide them with the services they expect .

Carlos Kazuo Missao Traditional banks will never truly disappear . While consumers are beginning to lean more towards the agility and access that new financial technologies provide , there is a deeprooted trust in banks that will be hard to displace .

This is not to say that traditional banks will not need to adapt in an open banking-centric era , however .

For instance , big banks still have a leg up on digital players when it comes to the amount of data they hold .

But as they are challenged by disruptors , open banking creates an opportunity for these banks to utilise their data more efficiently and partner with digital competitors to offer solutions that would require extensive time and resources to build on their own .

Legacy institutions are also innovating internally to become technology companies themselves . JP Morgan , for instance , has an internal payments technology for creating new payment solutions , instead of relying on third parties .

NICOLAS DE GENOT DE NIEUKERKEN , LEAD PRODUCT MANAGER FOR OPEN BANKING , SBS

78 March 2025