Opening the gates: A framework for an open banking strategy

This paper provides decision makers in digital banking with a framework for
developing their open banking strategies. Based on interviews with experts from leading
banks and insurers, FinTech and big tech, a large consultancy and the regulator, we have
identified five strategic dimensions of open banking — product innovation, customer
experience integration, ecosystem competition, datascape and geographical scope —
and mapped the relationships between them. Decision makers in financial services can
assess their position on these important dimensions of open banking and set their strategic
direction. Using the framework, we also illustrate how hitherto relatively closed banks with
a dominant market position are starting to transform into open ecosystem players that embrace digital innovation. Likewise, we show how open banking initiatives of big tech and
FinTech can be mapped on the framework. In addition, the paper reviews how regulation,
market and digital technology impact open banking strategy.