How open banking can upgrade the banking experience

When Apple launched its App Store in 2008, it transformed how software was created and distributed. This business-model innovation gave every smartphone user the ability to create their own bespoke suite of programs to serve their every whim. People no longer had to settle for the programs that came on their devices — and I’m old enough to remember when the cool Nokia flip phone only came with one game: Snake. Now Apple and Android users can add games, entertainment and any number of productivity tools from a bazaar filled with tens of thousands of choices. Banking is now on the cusp of experiencing a similar revolution as a growing number of institutions embrace the idea of open banking — where banks partner with third parties to offer customers a wider (and more easily customized) set of services.

A good example is Fidor Bank’s new FinanceBay, an open-banking platform where customers can compare and select among banking products in an app store. Fidor wants to attract the best services from fintechs, giving those firms access to a new customer base, while giving the customer an app-store-like experience that allows them to select products ranging from person-to-person payment apps to insurance products.

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