Let us pivot for a moment from the back office of ISO20022 payment messages to the front office where the customer meets the bank. Imagine your legacy bank has worked hard to modernize its payment systems and now carries rich data about a transaction end to end.
What challenges do banks face? Several in fact.
Sharing Customer Data: Who do I share this data with? What is the risk to the bank, the customer? How is my API strategy shaping up? Regulations are spotty at best and cant be depended to course correct us.
Partner: As a bank, I don't know the use cases of the rich data I am bringing, so let me partner with a third party. While I do benefit with customer acquisition is it damaging my brand? Do I promote my APIs to anybody or restrict it and if so what do I restrict ? Case in point--TD Bank sued Plaid recently.
Plus and minus points to consider such as how will the data be used by the third party and what risks arise to me as a custodian of this data. Key benefits of my product are a convenient way to compare accounts, some financial services and loans. Will price comparison benefit me or not? Upside is my sales channels and distribution increase. What are the downsides?
Distributor: In addition to my own products as a bank I can resell third party products like mortgage calculators, education and tools around budgeting for example. This leads to better customer journey. But what if the third party leaves and goes to another bank? Case in point--Mogo bank account origination was with one bank and they flipped to another--in this case Mogo is reselling the partner banks' balance sheet leading to some basis points yield but customer information is with Mogo so who has more value?
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