The Financial Services industry is undergoing another major transformation, underpinned by Open Banking and PSD2. Together these directives aim to give customers more control over their financial data and to open up the banking landscape to new and competitive
third-party products and services.
Individuals can now grant third parties secure access to their bank account information and permission to make payments on their behalf, and this is expected to result in increased competition.
Organisations now need to work harder to retain customers against the threat of other financial service providers and fintechs.
Organisations that rise to the challenge and use Open Banking to their advantage will succeed by:
- Taking the opportunity to transform their data strategy
- Putting in place customer transparency and control
- Building trust and loyalty.
With data strategy at the heart of securing competitive advantage, CIOs are increasingly responsible for corporate reputation and customer trust. Organisations need proof of consent from the end user to transfer data to third parties, with the risk firmly
lying with the organisation as the ultimate data controller. There can no longer be ambiguity around consumer consent, or opaqueness around how data is being handled or for what purpose it is being used.
CIOs are therefore turning to consent management platforms that can solve consent on a global, multi-channel scale in order to be confident of the legal basis to use and share this data.
To demonstrate to their customers that their data is in safe hands, CIOs are increasingly embedding personal data sharing controls seamlessly into existing and pre-authenticated customer touchpoints. This gives customers the gift of choice, allowing them
to change, rectify and revoke their consent at ease.
It unlocks the power of data at the lowest risk to both customers and banks.
Organisations that are not compliant are in danger of losing credibility and consumer trust overnight. In this context, it is unthinkable for a forward thinking organisation not to make every effort to reduce corporate risk and eliminate liability when it
comes to both handling data and allowing third party access to it. CIOs, with their role as custodians of data, have the power to shape a company’s competitive advantage and ensure it thrives in the new disruptive landscape.