Open Banking: Evolve Or Be Left Behind
The World Finance website noted that open innovation ascertains that companies need to become less insular and look beyond their own house to cultivate new innovations that will grow their business and enhance their services for end-users. Henry Chesbrough’s philosophy is based on the central idea that knowledge is not exclusive to a single entity, but exists in employees, consumers, competitors and third-party contractors. Chesbrough’s ideas have taken flight and found their way into the banking sector as open banking. Financial institutions are increasingly finding themselves cornered, as consumers demand a holistic banking experience and increased access to third-party resources. Alan Lockhart, of the Royal Band of Scotland claims that every bank will have to come to terms with open banking, whether they like it or not, because, “[It’s] the biggest change to the banking system since the invention of the chequebook.”
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