Banks Carrying out “Open Banking” Business -Part 2

Small and medium-sized banks rely on the service platform of technology companies to carry out “Open Banking” business.

Due to their own financial constraints, weak technology, or other banks that are unwilling to develop their own platforms, small and medium-sized banks use the media power of the middle layer to connect to the upper ecosystem, and thus a group of fintech companies such as Yodlee and SolarishBank specializing in third-party Open Banking platform services emerged. These banks and fintech companies mainly cooperate in two aspects. Fintech companies provide advanced IT technology, agile development process, and customized solutions based on customer needs while banks are mainly responsible for regulatory compliance, customer privacy, and providing customer needs.

Take Yodlee as an example. Its API products mainly include three categories: data aggregation, account verification, and capital flow.

Whether it is a large or a small and medium-sized commercial bank, its understanding and operation of the “Open Banking” business model reflects the reconstruction and development of financial technology and the bank’s business model in the new economic era. Not only through the construction of its own business model, but also through competition and cooperation with third-party partners and other non-financial intermediary services, commercial banks can improve the business operation efficiency and strengthen the customer-centered business model operation.