Nicolas Pinto’s Post

Exploring Open Banking Models 💡 Open Finance and Open APIs deliver the opportunity for transformational change, however, banks must review the scope and impact of Open Banking as more than a regulatory project and look at the real business impact that new business models brought about by APIs deliver to the financial services world. API Banking Below are the four main options banks should typically choose from or progress towards while evaluating the role they want to play in emerging API-driven financial services ecosystems. 🛡 Compliance: Legal minimum Ultimately, some banks will choose to follow a compliance-only approach, covering the legal minimum and offering mandatory APIs to regional Open Finance environments and ecosystems. In this role, the bank is a data provider only, enabling the broader ecosystem with access to its accounts. 📱 Monetization: Bank as AISP / PISP While publishing mandatory APIs is a legal minimum, there is no reason incumbent banks should not – as countless have now, globally – also play the role of a Data Recipient in the same format fintech’s and other third-party providers consume Open Banking data. 💳 Monetization: BaaS Banking as a Service (BaaS) is an emerging API-lead monetization model being adopted in the financial services world, where incumbent banks actively choose to monetize and almost contract out their licensed and regulated core facilities to offer essential financial capabilities to un-regulated and non financial institutions. 👨💻 Monetization: Embedded Finance It’s also important to consider Embedded Finance. Embedded Finance powers frictionless financial services, enabling a bank to access third-party channels and customer touch-points to which it would otherwise not have access. It allows financially unregulated organizations to seamlessly embed and include banking services into their offerings. Source: Fiorano - https://shorturl.at/8fyd6 #Innovation #Fintech #Banking #OpenBanking #EmbeddedFinance #BaaS #API #FinancialServices #Payments #Loans #Savings #Data