Wealth & Finance International - January 2017

73 January 2017 Services will exist that scrape two years’ worth of transaction data to calculate a credit score with absolute accuracy. They’ll then take the loan amount and credit score into a digital market place where banks can bid to supply the loan, with dynamic APR tailored to the individu- al. The person will pick the best bank rate and purchase the goods, all in seconds. Although we’re still some distance away from creating such an ecosys- tem (but closer than you think), it’s one of the possibilities available for consumers with the introduction of PSD2 and open banking stan- dards. The prospect of being directly involved in a purchasing decision – and being in competition with others – should encourage banks to think differently. It’s not just about the consumer however. The business benefits of new interactions extend further than customer relations. Banks can implement new API-driven services that fight against fraud by allowing merchants to submit additional details about a customer when asking for transaction approval. Retailers can reduce overhead costs and wastage in logistics by using customer data. Meanwhile, consumers will get a new wave of intelligent services that enhance all aspects of the retail experience. PSD2 and open banking is about far more than just complying with regulation. Banks have a real chance to build and power new services that people love and use every day. Getting there will require planning, and will touch on every bit of the business: technology – a scalable tech stack and real-time big data processing; strategy – a focus on services and partnerships that align with the brand and business objectives; products – dynamic products that meet new digital capabilities; and new internal processes and skills across the business that can deliver and maintain in this new consum- er-centric world. Name: Dom O’Brien Company: Fjord, Design and Innovation from Accenture Interactive Web Address: www.fjordnet.com Address: 500 West Madison Street Suite 2200, 23rd Floor Chicago, IL, 60661 USA Telephone: +1 312 427 2470