Open Banking is a new way for consumers to interact with their financial services. It opens up banking, to promote innovation, competition and drive out some choice for consumers in terms of how they consume and use financial services. This presents an opportunity to banks, but also to FinTechs and Incumbents to use that data for products and services.
Banks have a choice, they can become stewards of data, or they can pull in additional data, become more relevant and capitalise on profitable customer engagement. The impetus is for banks not to become providers, but to change their relationship with their customers and make the most of free-flowing data.
Over the past 5 years, we have conducted research with hundreds-of-thousands of consumers to better understand what they need to make better financial choices. Our findings showed that people want to make better financial choices, but are either not confident enough or are ill-equipped to do so alone. A customer-centric application of the benefits provided by Open Banking could help.
We realised that there was a risk that financial institutions were so occupied with becoming compliant with Open Banking standards that they neglected to identify or communicate the benefits to consumers.
As a result, we created the EY Open Banking Customer Innovation Centre which uses service design methodologies to add a consumer lens to the regulatory requirements, risk and compliance.
Our mission is to explore with real people the types of things they might find interesting in terms of their daily experience with financial institutions. We looked at creative ways how we could take common themes that consumers are used to using in other parts of their lives and apply that back into financial services.
We used the Innovation Centre to generate hundreds of product and business ideas around Open Banking. We used our consumer insights to identify the most promising concepts to develop further.
Our team iteratively designed each concept and developed interactive demos that were tested with consumers at key stages to ensure their needs and requirements were met. We also worked with EY Open Banking experts to ensure our demos were following Open Banking standards.
The demos were a useful platform to open up the conversation around Open Banking and identify new products and services for consumers that can benefit their lives and financial health. We found that once the concept of Open Banking was explained to them, consumers were likely to take advantage of the benefits of Open Banking.
Three principles emerged in our work on new products and services for Open Banking:
1. Customers need reassurance that Open Banking is secure and that they are in control of their data.
2. Customers need to know how they could benefit from Open Banking.
3. Customers need to know how banks benefit from their financial data.
We designed the centre to be a working space for our clients and their customers.
We built this centre here at EY-Seren to ensure that we bring customers and put them into the heart of everything we do. We recognise that it is important for our clients to meet regulatory requirements but we believe that there is a major opportunity to go out into the market, to talk with real people, to understand what they’re trying to achieve in the financial life they’re living and why they work with the banks they work with today and how banks can take that insight and take that direction and design new products and services that are more engaging and continue to make them relevant in the financial lives with their customers.