Read how open banking and PSD2 regulation has helped put customers first, kick started incumbent innovation efforts and lowered the barrier to entry for smaller institutions.
New research commissioned by the SWIFT Institute analyses the changes that incumbents and new entrants experienced following implementation of open banking and PSD2 in the UK and EU.
Authored by Professor Pinar Ozcan, University of Oxford and Professor Markos Zachariadis, University of Manchester, the paper builds on an an initial assessment of the API economy in banking.
Open banking: A catalyst for reinvention
Over the years, open banking has been described by both regulators and practitioners as a catalyst for reinvention in the banking sector. By redefining the ownership and therefore data-sharing rights, open banking and PSD2 regulations put the customer at the centre while lowering the barrier to entry into the financial sector.
What’s in the report?
The report explores the strategic importance of open banking, and takes the reader on a journey through the rise of neo-banks and fintechs, the initial incumbent bank responses to the new regulations, and how ultimately, banks learned to take advantage of this opportunity.
Culminating with a view to the future, the study identifies the need for regulatory attention to prevent a new form of intermediation and potentially monopolistic behavior.
Download the full report to explore the topic further, or read the report summary for an overview.
Download the summary report
Download the full report
- University of Manchester
- University of Oxford