How open banking is transforming customer experience
3 brilliant examples of how open banking is transforming customer experience.
We’ve recently explored the rise of next-generation open banking solutions. More and more, banks are turning to partners to tap into their specialist technical knowledge; from APIs and ecosystems to UX and beyond.
The reach and use case of open banking is also extending to companies from other industries. It is a growing trend in developing APIs that plug into existing accounts, offering customers a more connected experience.
There are significant growth opportunities here. PwC predicts that by 2022 almost two-thirds of UK adults and 71% of SMBs will be using open banking. This in turn will create a £7.2 billion revenue opportunity.
It’s an exciting time to take a look at case studies offering customers a richer, hyper personalised experience. Businesses seeking to find new ways to create value will reap the rewards of a more loyal customer base.
How open banking champions customer experience
Personal finance management
TrueLayer analysed millions of calls to find out the most popular and promising cases of open banking APIs.
The most common example was adding finance dashboards, auto-saving and smart budgeting. Innovators in the space are offering customers new ways to take control of their finances. This included alternative services for saving and borrowing beyond traditional offerings.
Online retailers are integrating payment gateways directly onto their platform. Making it even easier for customers, so there’s no need to input card details every time or leave the app to pay.
Nuapay’s research found that 54% of UK consumers would be willing to use open banking. The study found that online payments using open banking were most popular at 42%. Whereas 39% would use the service to pay for big ticket items like package holidays and flights.
Consumer education was a big area for improvement here too. Many felt that once they understood open banking and its security, they were more likely to accept this technology.
Retail personalisation, rewards and cashback
Open banking is helping retailers reward loyal online customers with instant, personalised deals, discounts and cashback. The friction of having to find unreliable offers on third-party sites is reduced.
These are just a few examples of how businesses that invest in open banking APIs are able to improve customers’ experience. Offering new services and apps that are designed from the customer back and built on data and insights, they found an increase in engagement.
These are exciting times here, too. Our cutting-edge Eliga Open Banking API platform will give businesses a complete picture of their customers’ financial footprint. Thus, helping to serve them better with tailored products and services.
Is your organisation looking to explore what development in the space means for your business and customers? Let us introduce you to Open by Eliga, our open banking platform.