Apidays – The Path from Open Banking to Embedded Finance
The Path from Open Banking to Embedded Finance
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For the last 10 years, analysts and experts have advocated in favor of being “open” to embrace the new digital economy. In the Banking sector, regulators have gone the extra mile by putting regulations that forced banks to open their IT systems and customers’ data via public APIs.
Under this forced innovation pressure, many financial institutions have opened APIs, but the mindset has been difficult to spread. Why? Because being “Open” is not a business goal. The word itself scared many executives who thought they would lose something valuable to the new partnering Fintech companies. After all, all the analysts told them in the ’90s and 2000’s that their data was their “new Oil” and their main competitive advantage… So why would it be an opportunity to be “open” now?
For the last 4 years, a new API mindset has started to replace this open banking mindset: The embedded banking Mindset. Indeed, with APIs, you don’t just “open APIs,” but you:
- embed your value proposition into other people’s applications and websites
- embed your core services & products into other people’s interfaces to reach their customers
- embed your assets and get feedback from the use of your APIs on what is trending
- embed your business model into 3rd party businesses that are scaling with you
Helen Child, Founder & CEO, Open Banking Excellence