apidays London 2022 - Unintended consequences of open banking for industry competition, Pinar Ozcan

apidays London 2022 - The Path from Open Banking to Embedded Finance
October 26 & 27, 2022

Unintended consequences of open banking for industry competition
Pinar Ozcan, Professor of Entrepreneurship and Innovation at Saïd Business School, Oxford University
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Transcript

1. Unintended Consequences of Open Banking & the Changing Competition Professor Pinar Ozcan October 2022 Oxford Future of Finance and Technology Initiative
2. 2022 SERIES OF EVENTS New York JULY (HYBRID) Australia SEPTEMBER (HYBRID) Singapore APRIL (VIRTUAL) Helsinki & North MARCH (VIRTUAL) Paris DECEMBER (HYBRID) London OCTOBER (HYBRID) Hong Kong AUGUST (VIRTUAL) JUNE (VIRTUAL) India MAY (VIRTUAL) APRIL (VIRTUAL) Dubai & Middle East JUNE (VIRTUAL) Check out our API Conferences www.a pida ys .globa l Want to talk at one of our conferences? apidays.typeform.com/to/ILJeAaV8
3. What is Open Banking and why does it matter?
4. Open Banking and PSD2 ‘Open banking is different from the normal trend of innovation first, regulation after’
5. Copyright Pinar Ozcan Saïd Business School, Oxford University Opening up data (and competition) step-wise
6. What does this mean for consumers? 5
7. Unbundling of the bank
8. Rise of Platform Business Models 7
10. BIGTECH DISRUPTION IN REGULATED MARKETS
11. BIG TECH ‘COLONIZING’ HEALTH SECTOR Patients Pharma / Biotech Hospitals / Clinics / Specialists Pharmacies Doctors (GP Practices) Healthcare device manufacturers IT providers Medical researchers Insurance Healthcare Conglomerates Regulation of output products Regulation of service providers Product/service flow Data flow
12. Is big tech coming into education? FIND THIS STUDY @ PINAROZCAN.COM
13. Big Tech Entry into Finance 12 Source: Jones & Ozcan
14. Open Banking in the UK How did Open Banking regulatory standards impact the industry architecture? Dize Dinçkol Oxford Research Fellow
15. Challenges in Adopting Open Banking Challenge 1: Limited scope  challenges in accessing different types of data Challenge 2: Interoperability w/o aligned incentives “Banks could have done it on day one, but they chose not to. So they were saying to me, ‘Don't worry about this particular step, […] just stick with the technical standards, we do customer experience, we're going to compete with each other to do it well’. It was disgusting what they produced. What should have been produced on two screens, [Incumbent Bank] required 16 and would require 12 minutes for customers to try and navigate their way through.” (UK Regulator, 2019 Q4)
16. Connectivity Bottlenecks 15
17. Emergence of New Industry Role 16 Push for Open Banking, but lack of standardization led to… …new industry role: API aggregators → shift from technical to strategic position
18. From Open Banking to Global Embedded Finance 17 Global connections Embedded applications Unbounded by industries or geographies Emerging competition
19. OXFORD FUTURE OF FINANCE AND TECHNOLOGY INITIATIVE Research findings, case studies, news
20. Pinar Ozcan Professor of Entrepreneurship and Innovation Q&A