Open Banking is here. Driven by a combination of regulation and competitive pressures, banks are preparing to make accounts and transaction data—as well as payment initiation services—available to authorized third-party organizations. These third-party providers have the potential to disrupt hard-won customer relationships, and banking incumbents now have a critical window of opportunity in which to shape the future of the financial services space.
For the banks that are prepared to go beyond compliance, these changes present rich opportunities to shape innovative offerings and drive new revenues. To enable API-driven services, banks will make significant changes to their information infrastructures. These changes will also open the door to non-traditional revenue-generating opportunities: API monetization. By monetizing APIs in a strategic way, banks can protect their market share and disarm the threat of nimble FinTechs.
In this white paper, Virtusa surveys the current Open Banking landscape and puts forward recommendations for effective API monetization, including API pricing models, risk and quality control mechanisms, potential new business models, and strategies for open banking.