Busting Three Myths about Community Banks and Open Banking

Read the Financial Brand article here.

Here is a brief summary:

• Open banking is often misunderstood and can lead to dangerous misconceptions.
• Community banks should not feel intimidated by open banking and can leverage third-party integrations within their tech stacks in the form of APIs.
• Incremental investments in a specific area of the tech stack can align with the broader growth strategy and offer valuable benefits for a community bank.
• Banking-as-a-Service is not the best use case for community banks as it requires significant investment in infrastructure and comes with compliance and data-ownership risks.
• Community banks can focus on high-value, low-risk, API-based initiatives like real-time integrations for account opening to improve back-office operations and front-end customer experience.
• Starting small can encourage banks to focus on areas they’re already good at or need to improve to grow.
• Banks should ask the right questions to avoid making the wrong decision and guide long-term approaches to growth through adoption.