Banks rethinking business models as PSD2 looms - Finextra research

I don't understand why banks take challenges from the competition lightly. Customers will give their business to the vendor that provides security and convenience. I have heard the same arguments from bankers for the last 5 years that you have heard in your survey. Bankers are just afraid to attack a challenge head on. Bank management is not very supportive to be a leader of new products. Bank management still believes a bankers life is loan business. Very sad

The content of this article, whilst not unexpected at all, is disappointing.  

"only five percent of poll participants expressing confidence that their core banking systems will not be a barrier to becoming an 'Open API bank'."

The discusson around XS2A seems to be about cost and technical difficulty, where it should be about the business case.  

PSD2 -much like real-time payments initiatives- is about opening up the market. To new services from banks but also to new services from payment banks and non-banks.

Banks have the chance to compete.  Now.  Not in 5 years.

As for the technical difficulty and security threat of opening account access and become an OpenAPI bank?  Give me a call.   It's not that difficult.

It should be around the business case, but as so often happens, many banks have not engaged in that thought process and dialogue. Instead they have waited until the legislation is pretty much finalised and will now have to scramble to achieve mere compliance, which does come down to a technical challenge and a pure cost to the bank, rather than an opportunity to invest in creating a new revenue stream.

I agree with both Tom and Rik, yes this is a difficult time for banks, immediate payments and PDS2 will change the fundamental nature of financial services.  This is a massive opportunity for banks to take back the central role in financial services, which for many they have already lost. But it requires action, they need to embrace these changes and engage with partners on their terms, not just regulatory compliance.  The alternative is rather obvious.

Security and Convenience? That Holy Grail has not yet been cracked although many have tried and failed. (Banks Have Nothing To Fear From TELCOs). In recent times, Apple Pay has come closest to cracking this Holy Grail. With latest research showing that only 6% of iPhone6 users have ever used Apple Pay, it's not clear whether customers have really given their business to a vendor that provides security and convenience. Until they offer not only security and convenience but also inspire trust and roll out their own (nonbanking) rails, all wannabe competitors are either picking on business that banks have rejected or operating as resellers for banks. Either way, banks have no great reason to worry.