New banking regulations—such as PSD2 in the EU, Open Banking in the UK, NPP in Australia and similar legislation in other countries—are aimed at increasing competition in the banking industry, improving customer choice and experience and providing certain new protections. This opening-up of the banks' domain will lead to the formation of new partnerships of players from both inside and outside of traditional banking and based on Open APIs. Banks must consider the role they want to play in this new API-based world, how to take advantage of it and how to manage.
While of significant value to the banks and their clients the concept of customer (and staff) journeys is focused mainly in the context of the relationship between the customer and the bank—i.e. the things that happen within the bank. But regulators have instigated the possibility of the new world based on Open APIs.
This new, interconnected world offers banks the chance to move beyond their current strategies based on omnichannel and digitisation, and into connected commerce; working with external partners to develop ecosystems supporting their customers in all aspects of their lives, rather than just the financial, and based around mobile apps supplied by the bank.
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The Payment Services Directive 2 (PSD2) was adopted and member states in the European Union will transpose the directive into national law.
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