Open banking, and what it means for European fintechs and consumers – Part 1 | EU-Startups
Summary
Other markets, such as Canada, New Zealand, Mexico, Argentina, Brazil, Nigeria, Hong Kong, Japan and Taiwan, for example, are creating norms to enable that to happen as well. Aggregators using bank and card APIs are facilitating access to cost comparisons and increasing the competition between financial service providers, traditional and non-traditional alike. On the financial service providers side, a significant number of new challenger banks and fintech startups are targeting a better consumer experience as their value-added differentiation. Three types of specialised fintech startups will have more chances of surviving in the new open banking environment, due to having less maintenance costs than digital infrastructure companies: Front-end specialists: Through their user-friendly dashboards and customer experience – on and offline – these players focus on giving access to various banks and third-party services – often to a specific segment of potential customers. Safeguards that exceed on-premises security, faster go-to-market speed, real time feedback, blockchain, chatbots, AI, and machine learning are only a few features enabling the cloud platform to have a lower TOC (Total Cost of Ownership) for fintechs, than having to build whole infrastructures and mainframes as banks had to do decades ago.