Your search did not match any results.
We suggest you try the following to help find what you're looking for:
Redwood Shores, Calif.—Sep 25, 2018
Open banking is one of the most critical trends driving change in the U.S. and international banking community. It represents the move from closed to open financial systems where data is shared with third parties through the use of Application Programming Interfaces (APIs). Oracle Financial Services commissioned an industry outlook report from MIT Technology Review Insights that examines how banks are responding to regulatory changes, market shifts and business model changes as a result of open banking.
The new report, Open Banking: The Race to Deliver Banking-as-a-Service, finds that most banks are still in the early stages of open banking adoption. Many are developing strategies, launching APIs, and keeping an eye on the competitive landscape. But the overarching sentiment among the banking community executives interviewed for this report indicates the banks that are able to balance speed, innovation and strategic long-term decisions will win market share.
“Not reacting rapidly enough to open banking could result in another party, either a competitor bank or fintech, innovating more quickly and eroding trust or relationships,” said Frank Tong, Head of Innovation and Strategic Investment at HSBC, in the report.
The report also asserts regulation is brokering open banking innovation through collaboration with banks to develop the frameworks needed to move forward – not only in progressive markets like the U.K. and Singapore but around the world.
“While regulation usually plays a ‘catch-up’ role when it comes to technology, our interviews revealed a fascinating trend of regulators setting the pace for banking innovation,” said Claire Beatty, Editor for MIT Technology Review Insights and one of the authors of the report. “We’re seeing a strong collaboration between governments, regulators, incumbent players and fintechs to ensure the right framework is developed to give customers greater control over their data and provide a more seamless financial services user experience.”
The report reiterates competition and consumer demand continue to be key drivers to accelerate banking digitization. Fintechs can quickly deploy consumer services while consumers seek the ease and convenience they offer. In order for traditional financial institutions to remain competitive they have to embrace open banking and a collaborative strategy that allows them to build smarter, deeper, and more relevant digital experiences across the customer lifecycle. Banks must also overcome challenges such as coordinating open banking strategies locally and globally, managing the ongoing digital transformation of the front and back office, prioritizing API development and uniting and educating teams.
“Open banking is no longer an option, but an inevitable reality,” said Sonny Singh, senior vice president and general manager of Oracle Financial Services Global Business Unit. “Banks that tap into an expanding ecosystem of potential digital partners, embrace APIs and leverage cloud-ready solutions, will get ahead in the race to efficiently deliver a broad range of financial products and services to their customers.”
For example, the process of designing customized APIs and exposing them for consumption can take between 12 to 24 months, depending on the complexity of the banks’ IT landscape. With a cloud-ready platform like Oracle Banking APIs, banks can tap into a prebuilt repository of more than 1,500 Representational State Transfer (REST) APIs.
For the report, MIT Technology Review interviewed the following senior executives from around the world who are directly involved with open banking: Abhishek Seth, Head of Open Banking and API, APAC and EMEA, Global Consumer Technology, Citi; Frank Tong, Global Head of Innovation and Strategic Investment, HSBC; Gerard Florian, Chief Information Officer, ANZ; Deniz Güven, Global Head of Customer Experience, Standard Chartered Bank; Jason Bates, Co-Founder, 11:FS; Alex Weber, Head of International Markets, N26 Group; Derek White, Global Head of Customer Service, BBVA; and Tomofumi Watanabe, Joint General Manager, Sumitomo Mitsui Financial Group.
The full report is available at http://ora.cl/G3Qd6
The Oracle Cloud offers complete SaaS application suites for ERP, HCM and CX, plus best-in-class database Platform as a Service (PaaS) and Infrastructure as a Service (IaaS) from data centers throughout the Americas, Europe and Asia. For more information about Oracle (NYSE:ORCL), please visit us at www.oracle.com.
Founded at the Massachusetts Institute of Technology in 1899, MIT Technology Review is a world-renowned, independent media company whose insight, analysis, reviews, interviews and live events explain the commercial, social and political impact of new technologies. MIT Technology Review derives its authority from the world’s foremost technology institution and from its editors’ deep technical knowledge, capacity to see technologies in their broadest context, and unequaled access to leading innovators and researchers. For 117 years, MIT Technology Review’s mission has been to equip readers with the intelligence to understand a world shaped by technology and the impact upon their careers and lives. Subscribe.
Oracle and Java are registered trademarks of Oracle and/or its affiliates. Other names may be trademarks of their respective owners.