Building Block 2 – Openness 2018-12-17T09:11:55+00:00

Building Block 2 – Openness


  • A customer-first approach is key to overcoming the complexity of the new road.
  • The model of competition is changing – an open mindset is becoming essential for success.
  • Fintechs and banks are trying to define the new rules of an open ecosystem

Twentieth century financial services ran on a linear principle of competition of “them” versus “us”. Regulators, vendors, and competitors kept businesses keen and made them buy new equipment when the market got tougher (them), versus (us) – a bank or insurance company that was pretty much guaranteed an easy ride providing they kept pace with the market.

The digital age has changed the old rules. Sometimes to such a degree that the lines between competitors, partners and customers have blurred as to become almost invisible.

Is Uber a transportation company, a payment provider or an employment agency? The answer will determine how the business is regulated (and taxed). So how should you answer, knowing that how you answer today might change when the competitive tide turns?

The impact of open banking and PSD2 regulation across Europe, and their gradual adoption in other regions, will only accelerate the disorienting feeling for many banks, and a fair proportion of fintechs as it takes effect in coming years.

Zero knowledge-proof – As a market driver, openness is not confined to compliance with the principles of new regulation. No matter how new rules are adopted, applied or interpreted, successful digital disintermediators need an open mindset. This means accepting their place in an inter-connected ecosystem where success is achieved by identifying win-win (them and us) scenarios. And that they can no longer predict the future with the same degree of certainty.


Previous Chapter
Next Chapter