Don’t be so stubborn you become one of them…
Core banking alone is rarely enough to support a bank anymore,
And plenty have already failed because of it.
You need a value-added service.
It could be quick and easy auto loans,
Or it could be as simple as a better app.
But you need something.
That’s where open banking comes in.
You access the API of a fintech with a service you want to offer,
And immediately you offer more value to customers.
(It also works in the other direction, commonly called Banking as a Service – BaaS, where the bank offers the APIs and platform to the fintechs.)
It might be offering Plaid or Zelle payments through your app,
Or it could be some complicated way of approving loans through an algorithm that makes an instant decision.
It doesn’t matter either way,
The point is just to have something.
The only issue is that some banks don’t have the internal tech teams, or enough knowledge of the market to implement a new service via API.
I hate to say it,
But that’s no excuse…
You’re only going to fall further and further behind as other banks adopt technology that you refuse.
You’ve got to get with the times.
This isn’t going to happen overnight — it will take years.
But make no mistake.
Every day you don’t embrace open banking is a day you fall further behind.
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Digging deep on banks is what I do.
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