Mallika Sathi, VP Security Solutions at Mastercard, shared her views in a SIBOS panel discussion on the role of banks in open banking scenario.Banks do compliance, risk management and treasury very well, she opened up. While data has always existed, they are now exploring the opportunities, in ways such as better customer targeting, improving personalization, drive costs down, etc.
Open banking is about trust and clear authentication mechanisms, she explained. That is where Mastercard is embedding itself into.
She gave an example about telcos. As regards pricing for payments, customers want content and are willing to pay for it, and hence telcos are exploring those partnerships. Likewise, banks will have to see what customers want and are willing to pay for, she explained.
She also shared a crisp example on APIs. Google Maps is a great example of openness. Google published its maps API and that created a new industry via the technique of collaboration.
Banks are partnering with fintechs and setting up pure digital banks and targeting new customer segments. There is a benefit in using a fintech to target a different customer segment, she vouched.
She concluded that most banks are optimistic about the future and the opportunities that open banking will provide.
