New survey shows open banking is a game changer for millennials

A new report published by Earnix, a leading provider of analytics solutions for the financial services industry, presented new findings stating that most millennials will use a single portal to aggregate services from multiple banks with which they have existing customer relationships in the future.

The report, The Role of Analytics in the New Banking Age 2017, stated that most banks believe predictive analytics and machine learning will become the most powerful way to win back customers over the next five years.

The survey, which was conducted by speaking to a total of 300 UK and European banks, focused on how open API banking will affect their businesses. The main findings show that 72% believe that the open banking initiative as part of PSD2 will significantly diminish their existing customer relationships. Three quarters of the participants also believe that banks will need to overhaul their pricing schemes and value models in order to keep up with the increasing competition and maintain market share.

Further data from the survey shows that 80% of bankers expect a significant increase in competition over the next five years as a direct result of open banking, and 93% believe that open banking will bring a deluge of new customer data that will revolutionize how analytics will be used to create more customer-centric financial services.

Earnix CEO Udi Ziv said: “Open banking is a game-changer for the financial services industry. Traditional banking services will be redefined, becoming more personalized and customer-centric.

“We believe that incumbent banks have a unique opportunity to excel in this new environment, and we are helping them deploy advanced analytics that leverages the gold mine of customer data they already have.”

Related reading