Gartner recently published their annual Hype Cycle for Open Banking 2019 and mentioned five°degrees as one of the sample vendors in the Digital Marketplace category.
In this Hype Cycle, Gartner examines the four main categories that CIO’s should plan their strategy and technology around: Strategy, Architecture, Technology & Services and Ecosystems.
What is “Open Banking” and how will it help banks to become future-proof?
Open Banking is to allow third party providers to access to your financial information in a secure way where it will result in equipping the bank with the technology needed to transform its digital operations and deliver products to customers quickly and effectively. Open APIs (Application Programming Interfaces) provide a unique opportunity for banks put themselves back at the center of their customers’ lifestyles.
According to Gartner “An open bank shares or consumes business services like data, transactions and algorithms with business ecosystem partners, such as other banks, partners, employees, customers, fintechs and developers.”.
A state-of-the-art digital core banking platform enables the connection of third-party products through standardized APIs that allow easy coupling and decoupling of software applications. On the banking platform’s client and orchestration layer, these interfaces unlock the potential of the fintech world, enabling customers to make use of third-party providers that develop specific or niche services.
“Open digital banking enables banks to orchestrate between both existing and cloud native core components and systems to function more effectively and provide customers with a service they already expect, receive and beyond.” states Martijn Hohmann (CEO, five°degrees).
five°degrees helps shape the future of banks
five°degrees uses an open ecosystem which enables banks to attract new customers. Use of open API’s provides access to their own services and offers opportunities for other parties to create a network of partners and services. In such an interconnected ecosystem, banks and fintechs provide access to products and services from other providers as well as their own, which is crucial when moving towards ‘marketplace banking’ or ‘open API banking’.
After being named by Gartner as one of the Cool Vendors in Banking in 2018 and recognized as a sample vendor for Open Banking, five°degrees has proven to be a great enabler for traditional banks to make the switch to ‘digital’, to meet the complex needs of their customers and to comply with new regulations.
The information provided in the report is of great value to all Bank CIO’s evaluating the capabilities required to enable open banking.
You can download the complete Hype Cycle for Open Banking 2019 report via this link.