A quarter of all UK's consumers have more than one bank account. Managing them is far from frictionless, as it requires switching between multiple online banking sites and apps. In the previous article, we explained that AISPs work as third parties to help users view all of their banking information in one place. AISPs, however, cannot initiate payments on the customers' behalf - that’s where PISPs come in.
In the framework of the new Open Banking architecture, is the creation of the Account Information Service Provider (AISP).
At the age of 16 I opened a bank account, and I picked the bank based on the free gift they gave me; the new Will Smith album, on CD. And I still use it now (the bank, not the CD).
Banks in the UK and Europe have created a strategy of offering free basic accounts to build a customer base, then generating revenue by selling financial services to this captive market and locking them in for the rest of their lives.
If the last 10 years have shown anything, it is that nearly all major industries have been transformed by technology. Closed, opaque, physical cost heavy incumbents have been replaced by technology-led, innovative, customer first businesses. But then came Open Banking.