Preparing for Open X – The World Fintech Report 2019 by Capgemini 2

Last week Capgemini released their annual fintech report – World Fintech Report 2019. Capgemini provide a cool Fintech Report 2019 infographic recap, which i have shared below.

World Fintech Report 2019 – 5 Key Themes:

1. Capgemini and Esma believe the financial services sector must look beyond the current open banking “phase” and toward a future shared marketplace, and move now toward this next phase which they are calling Open X
2. Open X turns the traditional banking model on its head and therefore requires a dramatic rethink, emphasising:
   1. Experience over products
   2. Data over assets
   3. Partnering over build/buy
   4. Shared Access over ownership
3. API monestisation will, according to Capgemini, enable success in this next Open X phase
   1. Direct:
      1. Revenue sharing
      2. API fees through calls, subscription, transactions
   2. Indirect:
      1. Meaningful data and insights
      2. Referred business
      3. Brand and product promotion
4. Factors hindering Open Banking include:
   1. Data security and privacy concerns – think Facebook and the Cambridge Analytica scandal
   2. Fear over the loss of control, particularly over the customers data – think boardroom mindset change
   3. Various and conflicting mindsets – think potentially letting go of traditional banking services and products
   4. Regulatory compliance and cybersecurity concerns – think evolving cybersecurity threats and mounting regulatory pressure
   5. Partnering and collaborating with the right companies – think trust
5. Preparing for Open X requires:
   1. The right talent
   2. Utilising data and technology
   3. Collaboration across the ecosystem to modernise in-house systems and processes