The World FinTech Report 2019 identifies a dual challenge: FinTechs are struggling to scale their operations and banks are stalling on FinTech collaboration. As a result, industry players are looking to leapfrog beyond Open Banking towards Open X, which is a more effective, structured form of collaboration, facilitated by Application Program Interface (API) standardization and shared insights from customer data. The era of Open X will create an integrated marketplace, with specialized roles for each player that will enable a seamless exchange of data and services, improving customer experience, and expediting product innovation.
Key findings of the report include:
Open X will transform industry norms and assumptions
The advent of Open X is being driven by four fundamental shifts:
- A move away from a focus on products to an emphasis on customer experience
- The evolution of data as the critical asset
- A shift from prioritizing ownership to facilitating shared access
- Emphasis on partnering to innovate instead of buying or building new solutions
Open X will lead the financial services industry to a shared ecosystem or marketplace, in which the industry reintroduces the re-bundling of products and services, and both banks and FinTechs must re-evaluate their strategy for innovation and serving customers.