Open Banking – Empower Consumers Through Innovation

The Open Banking Revolution

Open banking, the ability of third-party applications to access consumer banking and financial accounts using Application Programming Interfaces (API), is becoming a major source of innovation and is poised to reshape the competitive landscape of the banking industry.

By networking accounts and data across institutions for use by consumers, financial institutions, and third-party service providers, the consumer benefits from a seamless and transparent banking experience.

Competition Creates Opportunity

Financial institutions have long held a monopoly over their consumer data. This data control, once a competitive advantage, is a hinderance in the era of Open Banking.

It’s critical that we view Open Banking as an opportunity, not a threat. It invites openness and innovation among financial institutions which will benefit the consumer. And Open Banking is not just a benefit to consumers. It will cause large, established institutions to compete with smaller, more nimble banks and FinTechs, resulting in lower costs, better technology, and a more seamless and integrated customer experience. Financial institutions can take advantage of this new technology to strengthen customer relationships and customer retention by becoming an active partner in managing consumer’s finances rather than acting simply as a transaction processor.

Legacy Systems & Incremental Innovation

Legacy financial systems may present a barrier to innovation since these systems may not be well positioned to address Open Banking strategies. Financial institutions will need to address limitations within their current systems and invest to adopt new technologies which allow them to compete.

Incremental Innovation allows financial institutions to deploy next generation solutions which are better suited to address speed-to-market needs of an effective Open Banking model. These API Gateway solutions integrate with legacy financial systems to allow improved speed-to-market while reducing risk to legacy systems and traditional financial services.

Pick A Strategy

Financial institutions should define incremental innovation strategies with the goal of deploying future proof API Gateway solutions which allow them to expand technical capabilities to meet the ever-growing demand for consumer-centric solutions. Euronet’s REN Innovation Ecosystem is designed to meet these ever-changing needs.

ATMs, initially designed to dispense cash, have greatly expanded services over time. Cash and check deposits, transfers, ordering of checks or statements, and FX currency dispensing all connected the customer to an increasing number of banking products and services.

Connection to a larger payments ecosystem followed with the introduction of utility bill payments, remittance, charity donations, prepaid airtime and digital wallet top-up.

Today, the ATM is a marketplace for a host of non-traditional banking services, enabling the user to purchase digital content, lottery, event and museum tickets, as well as transportation passes. At the same time, ATM screens have found their place in the world of advertising, displaying generic or personalized – often interactive – targeted messages to users.

These enhanced services attract new consumer market segments of digitally savvy individuals who view the ATM as a one stop shop, fulfilling multiple payment needs, banking or retail, at home or when traveling.

Globally, Gen Z users come to expect these ATM transactions. They receive or transfer money, buy digital content, pay bills, buy airtime, and travel the world. When transacting, they appreciate the practicality and speed of diverse digital channels. Innovative ATMs fit well with the Gen Z profile as a fast and reliable hub to a variety of everyday activities or special experiences. The ATM underlying technology is also rapidly evolving, transitioning from cards to mobile phones and from PIN security to biometrics, in line with Gen Z preferences.

Financial institutions and ATM operators who embrace diverse transaction capabilities and cutting-edge technology on their terminals will succeed in attracting the next generation to the ATM and enhance their presence and brand identity in the payments landscape of tomorrow.​