Already today, banks are finding themselves threatened by digital-savvy fintech start-ups, bringing innovative products and best-in-class experiences to users. And things are just getting started. As from 2018, PSD2 (The European Commission’s Payment Services Directive 2) will create a much more open and competitive market. It will facilitate payment services, and (securely) open up banking data to other parties.
To make this tangible: this means all your (financial) data belongs to you, and you will be able to use it in the app or tool you see fit. This can be an aggregated (personal or business) finance management tool (like Mint), or a banking app that’s just so good you want to use it to consult all your accounts and do all of your payments (like Yolt by ING UK).
This means it has never been more essential for banks to offer their customers digital products and services that are effective and delightful. To conceive and ship solutions that solve actual needs.
Banks that fail to act on big shifts like PSD2 will lose the primary relationship to clever start-ups, or even worse: to other banks. Either way, they lose, and are reduced to playing a backstage role at best.
On the other hand, banks that are capable of innovating ánd executing promptly, have the potential to deliver great new products and services, and become a one-stop finance shop.
Many banks are able to identify these opportunities and threats, but find themselves slow to move. Luckily, frameworks like Design Thinking (used by the likes of Apple and Google) can help big organisations innovate, by incorporating solution-focused and user-centred design methods into their thinking.
In The Pocket wants to help kickstart this change. Banks have a choice: simply comply (and be reduced to a backstage role), or explore and exploit the potential. This whitepaper helps banks discover those possibilities.