Open banking services

In Banking and capital markets

Open banking is a disruptive force in the financial services industry. It will change how consumers engage with their banks and financial services providers, introduce new channels and promote innovation and competition in financial products.

What EY can do for you

Maintaining a trusted open banking ecosystem requires a clear customer-centric business strategy, new business and operating models, rapid innovation cycles, flexible technology integration, enhanced security and an updated privacy and liability regime. We see open banking as a strategic opportunity for both new and established institutions – and also a strategic risk.

To address the regulatory changes and prepare for the new environment in Europe, banks are establishing transformation programs, with initial focus on meeting regulatory deadlines and delivering good customer outcomes. Banks should now be confident in complying, and put in place robust security measures, develop an understanding of liability and create compelling customer propositions.

In other countries, the regulatory imperative is less, however,  open banking continues to develop, driven by customer expectation and enabled by new technology.

Consumer uptake of open banking is expected to drive new competitive dynamics. Plus, financial services firms will also need to monitor these trends and review appropriateness and sustainability of ongoing business strategies. New data and payments capabilities, through open banking, have the potential to trigger industry-level digital transformation, unlocking innovation and driving competition.

Our capabilities include:

Open banking strategy: Strategic review and scenario analysis under open banking; new business models and opportunities for pursuit.

New proposition, customer experience and service design: We have a full complement of human-centered design services that apply customer research and insight to new proposition development using a proprietary agile service design approach purpose built for open banking and financial services.

Innovation scans and FinTech lifecycle support:

  • Innovation and disruptive capability scans; engagement paths assessed from vendor sourcing to investment; partnership programs from experimentation to production; measuring success; providing decision-making frameworks.
  • M&A and venture capital: Lead advisory support and full suite of diligence (commercial, financial, technical) and legal services.

Regulatory and compliance advisory services:

  • Advisory services: For example, assessment of role requirements; evaluation of permission frameworks.
  • Rules traceability: Regulatory interpretation across General Data Protection Regulation (GDPR); Competition and Markets Authority (CMA); Revised Payments Services Directive (PSD2); program articulation – build and change requirements.

Target operating model: Target operating model design; transformation execution and program management to balance compliant delivery with strategic optionality.

Solution definition: Support for end-to-end solution design from business analysis to IT architecture.

Application program interface (API) - strategy and frame-working: Design, development and maintenance frameworks; API commercial analysis/cost recovery and pricing.

Data analytics: Leveraging data as an asset, from customer insight to operational and end-to-end performance management information (MI).

Security risk framework: Integrated with the operational risk framework to identify security risks, events and consequences including privacy and payment fraud issues.

Cyber risk analysis: Holistic review of cyber defense preparedness including incident identification and response and mandatory reporting requirements.

EY served on the original Open Banking Working Group (OBWG) in the UK, providing policy-framing recommendations, and continues to support the Open Banking Implementation Entity (OBIE) in production of the open API standards. We have extensive experience supporting a breadth of clients from FinTechs to large multinational institutions across financial services and other sectors.

We have a global open banking innovation center to co-create and prototype and test offerings. We also have a comprehensive suite of global services, through local teams, to help our clients with their customer-centric strategy, compliance, operations, technology, security and end-to-end delivery management.

We are ready to support all aspects of your open banking journey.

Global payments

We help payment service providers, industry suppliers, new entrants, investors and entrepreneurs reap the rewards of the future of payments.

 

Explore our latest thinking on payments in banking and capital markets.

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Case Study
The better the question The better the answer The better the world works
Case Study

Case study: How one of India’s largest public sector banks merged and transformed itself

EY merged three large banks with smooth Day-1 integration, minimal disruption and new operating model.

Case Study
The better the question The better the answer The better the world works
Case Study

How would the bank transform its operating model amidst a merger?

Successful Day-1 integration with best-in-class operating model design led to a holistic transformation.

One of India’s leading public sector banks merged with two other banks and the combined entity resulted in one of the country’s largest banking entities. It was the largest merger in the Indian banking industry at the time.

At the time of the merger, the bank’s primary objective was to achieve seamless Day-1 integration with minimal customer disruption and smooth structural, cultural, operational, and functional integration. The bank sought support to manage the scale and complexity of this integration. It also wanted to ensure that the combined entity realized all synergistic opportunities for future growth.

EY worked with the bank to deploy a destination operating model for providing a competitive advantage across the value chain. The new operating model set a foundation for scalable growth and higher efficiencies across sales, credit, collections, and internal operations.

Business transformation road map
Case Study
The better the question The better the answer The better the world works
Case Study

EY led Day-1 integration and destination model roll-out to transform the bank

The transformation involved building an operating model with a revamped organizational structure, efficient operations and a culturally aligned workforce.

EY conducted a detailed diagnostic and comprehensive Day-1 readiness assessment across the business, support and control functions of the bank. The key focus areas were:

  • Harmonization of products, processes and policies
  • Ensuring minimal customer disruption
  • Enhancing geographical reach with an optimum product mix
  • Alignment and integration of unified digital platforms for customers

Subsequent to the successful Day-1 merger, EY created a destination operating model with an 18-month long transformation roadmap targeting:

  • A four-tiered credit operating model with specific focus on large corporates, mid and small corporates, micro, small and medium enterprises
  • A revamped organization structure to create specialized verticals including fintech and collections and recovery
  • A comprehensive assessment of potential cost and revenues synergy arising from the amalgamation and developing a 3-year roadmap for the bank for realizing the same
  • Seamless customer experience with inter-operability across branches and other digital and physical channels 
Operating model transformation
Case Study
The better the question The better the answer The better the world works
Case Study

The bank saw successful business transformation with an efficient operating model

The bank is set to continue its momentum and grow rapidly to achieve its future targets.

As the merger stabilized and concluded, the bank saw substantial improvement in its overall business and operational performance, leading to a sustainable change in the bank’s financial metrics with a significant value delivered by EY.

20%

Improvement in cost-to-income ratio

13%

Cost synergies

3.5%

Revenue synergies

The engagement was led by the EY team and senior bank leaders including the MD and CXOs. The EY team included a cross-functional mix of partners, directors, senior managers and over 40+ consultants who came together to devise the merger and integration strategy for the bank.

EY became a trusted partner for the bank by enhancing its geographical footprint, strong future roadmap and optimized target operating model. These milestones were achieved by establishing strong relationships with the senior executive management and division stakeholders.

Transformation Realized

Transforming businesses through the power of people, technology and innovation.
Business operating model

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