Open banking is reshaping the competitive landscape of the financial services industry. At Adaptigent, we help our customers overcome open banking adoption hurdles to achieve long-term success. We know the future of your open banking offering depends on the value it provides or the monetization opportunities it creates. Let’s take a look at which open banking business model can unlock the most value for your operation, enabling you to build beneficial ecosystems to optimize costs, improve customer retention and spur innovation.
Open Banking as a Platform
Directly monetizing the open banking as a platform model involves banks charging a referral fee to third parties for listing and selling products through the banking distribution channel. In some more complex cases, the third party may agree to a shared revenue model with the bank. Open banking as a platform initially helps banks grow their customer base and expand their offerings. Down the road, platforms and partnerships help banks preserve brand relevance and long-term sustainability.
Open Banking as a Service
Implementing the open banking as a service model allows banks to charge a fee to third parties for the use of or consent to distribute their APIs. Indirect monetization from banking as a service includes increased reach and awareness, improved partner integration and reduced costs.
Open Banking Partnerships
Partnerships are essential in all of the monetization models. The unbundling of services complicates customer retention, but open banking APIs are now shifting the narrative. Many banks are already pursuing fintech partnerships to consolidate an array of financial services in one place to retain and attract customers.
While there are various monetization strategies to consider, the most critical and time-sensitive decision is the one you’ve made to initiate open banking in your institution. Adaptigent is ready to guide you through every stage. Listen to what our seasoned industry experts have to say about navigating open banking and learn how our Open Banking SmartBridge can securely connect legacy IT systems to third-party applications.