Timothy Vincent, Solutions Engineer Manager EMEA, DataStax
How will the increased use of open APIs shape the financial services market, and how will it impact different market players in both the short- and long-term?
The increased use of open API’s will impact banking institutions of all sizes, opening up financial services and payments markets to new competitors and service providers. Open API’s will provide new opportunities to make use of banks’ internal data and external market information in real-time and at scale as part of delivering customer services.
Which activities should banks be prioritising in the wake of open banking?
To meet the requirements around open banking, consolidation of data should be a priority. By looking at how to manage data at scale, banking IT teams can implement new cloud applications that can meet new customer experience expectations. Without the ability to consolidate data effectively, understand the relationships between the data elements, and achieve all this in real time, banks will find it difficult to implement new services that customers will value and face a potential loss of those customers to competitors.
What opportunities does Open Banking present, and which commercial strategies will thrive in the new environment?
Opening bank systems to third party access is a huge risk unless banks organise themselves to leverage data as a differentiator; this is the opportunity. This goes beyond looking at current data sets that are held in individual silos and instead involves thinking about how to use external and internal data sets together. The alternative is to let competitors take this approach. The strategy is to hold the data in an operational data layer to have a 360 view of your customers to better deliver a fully personalized experience in the context of where they are on their journey with the bank right now.
How can firms overcome the security and privacy concerns associated with data sharing?
This is a hot topic at the moment with the deadline of having a GDPR compliant strategy looming fast, especially when looking at hybrid cloud or multi cloud architectures. You need not only a data platform that comes with advanced security, encryption, access controls, audit trails, but also the ability to maintain data autonomy. For example, in a hybrid cloud architecture you need the ability to control which data resides on premise and which data resides in the cloud. DataStax has the ability the address this and other data autonomy requirements.
What are the best strategies to encourage customer engagement?
Having a customer-centric strategy where an organisation demonstrates that it has robust data privacy capabilities that are to the benefit of the consumer is a major USP that will drive customer engagement.
Why will you be speaking at Finance Edge's Open Banking Summit, and what do you hope to get out of the event?
As a software vendor it is vital for us to be in regular contact with customers and potential prospects in order to better understand current market trends and emerging market requirements.