Banking on Innovation Through Data

by: Marc Torrens

The last few decades have seen the financial industry slowly incorporating Internet-based technologies to open up new distribution and operational channels. Digital banking allows customers to access almost all financial services from anywhere, at any time.

Banks, however, are still offering essentially the same products and services as they did in the past. Compared to other industries such as entertainment, travel and retail, banks are not yet using these channels to actually change their business model or propose new and more relevant products or services. A few bells and whistles aside, the banking industry has yet to be truly disrupted.


At the same time, banks are in a uniquely privileged position to take the financial industry where it’s never been. However, they are under a lot of pressure to do so before the giant Internet companies beat them to it. Moreover, banks are facing a wave of unprecedented competition from an emerging set of pure FinTech players.

What banks have in spades is reliable, quantifiable, and best of all, monetizable, data. Unfortunately, banks largely lack a culture of Internet innovation and the agile, quick-to-market IT organization that forms the DNA of FinTech startups and Internet giants.


Living in a world of interconnected systems in which real value comes more and more from data itself, banks must open up and offer well-structured and secure APIs on top of which third-party innovators can develop the next generation of financial solutions.

The FinTech application development community is endlessly creative and agile. Through data APIs, tech companies, banks and their customers will all benefit from an increasingly valuable ecosystem of innovative solutions.

This new approach not only generates new revenue streams, but more importantly enables banks to lead the coming disruption of the financial services industry. This article describes how banks can open their data to create a productive innovation ecosystem together with third-party players.

Editors Notes: This entry has been submitted to the FINTECH Book, the world’s 1st globally crowd-sourced book on FINTECH. Readers that enjoyed this initial abstract are invited to share and like it so that it may be featured in a longer version.

The FINTECH Book is due to be released in April 2016 and is available for Pre-Order on Amazon.

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