Typical Business Challenge
According to the UK Payments Council, half of the 10 oldest continuously operating banks in the world were founded in the UK starting in the late 1600s. In many ways the service offered by banks has been “the same” ever since: a safe home for deposits, access to loans for those who qualify, payment facilities and reports on one’s account(s). That all changed on 13 January 2018!
The implementation of PSD2 directive (aka “Open Banking”) from 13 January 2018 will be seen as a watershed, the impact of which was underestimated by many. In meetings with senior people responsible for innovation at two of the UK’s top 10 retail banks, both mentioned near identical innovations – a mobile phone application developed by Bank A which would allow consumers to seamlessly transfer funds to and from accounts held at other banks. Whilst this is a moderate improvement for those consumers with multiple current accounts, it is trivial convenience compared to the changes which will be seen.