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Opening the gates: A framework for an open banking strategy
Journal of Digital Banking,
4
(4),
364-376
(2020)
Abstract
This paper provides decision makers in digital banking with a framework for developing their open banking strategies. Based on interviews with experts from leading banks and insurers, FinTech and big tech, a large consultancy and the regulator, we have identified five strategic dimensions of open banking — product innovation, customer experience integration, ecosystem competition, datascape and geographical scope — and mapped the relationships between them. Decision makers in financial services can assess their position on these important dimensions of open banking and set their strategic direction. Using the framework, we also illustrate how hitherto relatively closed banks with a dominant market position are starting to transform into open ecosystem players that embrace digital innovation. Likewise, we show how open banking initiatives of big tech and FinTech can be mapped on the framework. In addition, the paper reviews how regulation, market and digital technology impact open banking strategy.
Keywords: open banking; regulation; digital strategy; FinTech; big tech; digital innovation
The full article is available to subscribers to the journal.
Author's Biography
Willem Standaert is an Assistant Professor at HEC Liège and a visiting Professor at Vlerick Business School and Ghent University. His research interests are in the areas of technology-mediated business meetings, digitally enabled buyer-supplier interactions and digital innovation. Willem’s academic work has been presented at scientific and business conferences and published in academic journals such as Electronic Commerce Research and Applications, Information Technology and Management, Journal of the Association for Information Systems and Psychology & Marketing.
Steve Muylle is Full Professor and Partner at Vlerick Business School and Full Professor at Ghent University. He is the Academic Director of the Online MBA programme at Vlerick Business School. His research focuses on the use of digital technologies in business and has been published in various scientific outlets, including IEEE Computer Society Proceedings, Communications of the ACM, Decision Support Systems, Electronic Commerce Research and Applications, Information and Management, Information Technology and Management and MIT Sloan Management Review.
Bjorn Cumps is Professor of Management Practice at Vlerick Business School. He is responsible for the financial services sector approach at the school and has developed several FinTech-specific programmes for Master, MBA and executive audiences. Bjorn has published in several academic and business journals, including Information & Management, JIT Teaching Cases, IEEE IT Professional, Information Technology for Development, Journal of Digital Banking, Journal of Enterprise Architecture, The Guardian, Global Banking & Finance Review and Intercontinental Finance Magazine.
