Why I'm glad #OpenBanking can help banks to be more like Citymapper

As an avid user of the Citymapper app, I click on “Get Me Somewhere” and it beautifully aggregates for me transit, transport and navigation information and provides it all to me in a single interface. I am oblivious to the fact that it has had to combine APIs from the MRT train and bus companies or other aggregators like Uber, together with weather services.  After having tried multiple different transit and location tracking apps, I love that I get all the travel and routing information served to me in a single place here (also ofcourse that it tracks my location and helps me get off at the right bus stop).

Let’s face it. For all the hesitation there may be among users and banks to embrace open banking and interoperable technologies, we are / will be dealing with an increasingly evolved user base with:

1. Users who have a need (This is what I want to do); and we seek a solution (What’s the most optimal - fastest / most economical / most convenient - way to do it).
2. Users who want end-to-end: We want information, but we also want to know what to do with the information and be able to act upon it. (Therefore I don't want to only see the best route across multiple options, I also want to be able to book my Uber directly through it).

Trying to provide a consolidated banking experience is not entirely new. Banks and Fintechs have been working on Account Aggregation - some of the early banking products that I worked on were BAI, SWIFT MT 940 series compliant. Others have resorted to work-around solutions to access client data via screen scraping to access bank account information on behalf of a customer. They all attempt to provide corporate or retail customers a single view across their banking or financial relationships. But resistance from banks to share with other banks for fear of cannibalizing their own business, reluctance from users to provide access to their data, and data security concerns have been authentic, but they have not allowed these solutions to become more mainstream.

Regulatory-led initiatives such as UK’s PSD2 & Open Banking, or IndiaStack are great examples of the emergence of interoperable ecosystems between banks, Fintechs, government, commercial establishments and end-users.

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Users are already searching for the most optimal (fastest / most economical / most convenient) ways  to “Get Them Somewhere / Something”. For Banks and Fintechs to thrive (not just survive) in this ecosystem it will mean putting the end-user upfront and center.

Making the AI in “financial” contextual. And relevant.

Banks incorporating chatbots into their customer service is only scratching the surface. For end-users, the “banking experience” is longer restricted to the bank - be it branch, website, app, kiosk or chatbot. Rather it is about making the “financial” contextual and relevant within the mainstream of how we conduct our various activities.  How smooth can the experience be for end-users if with the increased intelligence and tech we can better:

Listen and respond - You asked for this info, here is the information you need. Or here are the options for you to consider. (This is pretty much where most banks and FI are today.)

Understand and suggest - I understand you’re contemplating between all these different options. Given your history of commercial transactions, your likes and preferences, and your financials, here’s what I’d suggest would suit you better. By the way, others with similar profiles as your’s have done this.

Monitor  and prescribe - If you buy this, you won’t have enough to go through the rest of the month. Or pay the rent. Or buy that expensive item you’ve budgeted for. You’re better off NOT buying this now, let’s plan for this purchase at a later time.

Provide locational and contextual recommendation - Now that you’re here, you might want to take a look at this as it's just what you were looking for. Or if you go just a bit further, you may like this better because it’s more exclusive. ...Or it’s cheaper. Or hold on a bit, they usually have a sale this season, so hold on for now and come back in a week.

Track and maintain...and execute - I’ll make your life easier by taking over all or most of your tedious tasks of tracking your expenses, bills, fees, tax, etc. Also when I remind you your tax is due, or credit card is due, making the payment is just a click away.

Consult and inspire - I’m available when you want to brainstorm. Or I’m going to drop in once in a while and leave behind an inspiring thought or idea for you think over as you consider investment options, making a huge career move, etc.

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Even as we develop the ability for computers and machines to think and respond like humans, it doesn't have to be human. We've started with (chat)bots, users are better off  knowing when it’s a human they are interacting with, and when it’s a (chat)bot. If they are provided with this information beforehand, they’ll be better prepared to navigate the interaction and manage expectation.

And no, we don’t need to feel compelled to make banking chatbots overly friendly and chatty. If I want to know my account balance, I only want that information, I don’t want to chat.

The true power for banks and Fintechs is in tapping the potential within AI and its various sub-fields of Natural Language Processing and Machine Learning in a more intuitive manner, and figure ways in which it can make end-users' lives better.