EBA report examines operating model for digital and open banking readiness

The Euro Banking Association’s (EBA) Open Banking Working Group has published a report that explores an operating model for banks on their way to digital readiness.

The report – titled Ready or not? Gearing the bank operating model towards digital and Open Banking readiness – covers the implications of digital readiness at large for banks alongside the requirements for successfully introducing open banking on an operating level.

According to the EBA, the research of the working group was enriched by the input of digital and open banking experts within the EBA member community. This included digital leaders from 12 major European banks.

The research of the working group was enriched by the input of digital and Open Banking experts within the EBA member community, including digital leaders from 12 major European banks.

The report suggested that digital-ready banks have five characteristics in common – these included being customer-focused, data-driven, technology-enabled, adaptive to change and they open up to leverage ecosystem opportunities.

Discussing open banking, the report stated, “Open Banking is a key ingredient for bringing those characteristics to life. Open Banking helps meet customer needs by providing more value through relevant products and services and by reaching customers right where they need these most. Open Banking also extends the scope of relevant data beyond organisational borders and helps achieve the agility needed for successful transformation.”

EBA payments and operational resilience advisor Vincent Brennan said, “Digitalisation has shifted customer behaviour, disrupted value chains, brought on new competition, and increased available data. Many banks have already started the transformation of their operating models to be ready for the digital environment – and they consider Open Banking as a critical element in this transformation, who led the working group throughout the delivery of this report.”

EBA secretary general Thomas Egner added, ““This report offers a framework for individual institutions as they are gearing their operating models towards digital and Open Banking readiness. We also hope that it will contribute to the ongoing dialogue on the challenges and best practices around digital and Open Banking operating model design.

“The EBA community’s support of this research shows that people are eager to share their experience and learn – especially with Open Banking that, despite its progress, still features plenty of unchartered territory.”

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