Digital Technology in Customer Relationships
By Małgorzata Motyl, Penteris
Digital transformation is reshaping banking, with bricks-and-mortar high street branches quickly disappearing. Digitalisation is forcing institutions to transform their business models and adapt. Significantly, digital is changing how we provide “value” to customers.
Banks must now keep up with the “always-connected” customer who wants to have access to banking services any place, any time, all the time. The EU’s open banking solutions have only accelerated the transformation.
Open banking constitutes a new standard on the financial services market, implemented in accordance with the EU PSD2 directive. Customers gain control over the use of their sensitive data, which is shared with banks and other approved entities to get the best deal possible across a range of financial products. A single dashboard allows banks to offer a complete solution to customer financial needs. It also encourages competition between financial institutions and leads to more innovative products and services. The direct and fast exchange of financial data will help reduce operating costs and improve business performance.
Open banking is gaining strength globally. The advantages of PSD2 are encouraging others to develop similar solutions: CMA in the UK, HKMA in Hong Kong, and other initiatives in Australia, Japan, and Brazil. The US currently lacks any law on open banking but the market is pushing to define guidelines, including the responsible use of consumer data and the generation of a regulatory environment that encourages innovation.
Open banking certainly puts the customer first. The integration of banking services focuses on simplifying processes and maximising the use of customer data. It will catapult the market into significantly greater changes within the next five years. Turning complex and inconsistent banking services into a series of fast, easy to use and unified tools will boost visible benefits for consumers.
Małgorzata MotylGGI member firm
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Penteris is a European law firm committed to keeping clients ahead of the market with a mantra of “getting things done” and “building long-term relations”.
Małgorzata Motyl focuses on compliance and regulatory issues. Her specialised know-how supplements her broad and deep experience in handling corporate matters in, amongst others, the financial, banking, and real estate sectors.
Published: Auditing, Reporting & Compliance Newsletter, No. 05, Spring 2021 l Photo: Cinematographer - stock.adobe.com