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TMPE2019: Open Banking potentially biggest disruption to financial services ever – HSBC

  • 07/11/2019
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HSBC has called the Open Banking regulation changes potentially the biggest disruption ever to affect the financial services market.


Speaking at Mortgage Solutions’ The Mortgage and Protection Event at Manchester, the lender said there was a vast array of possible uses for the application and brokers could be at the forefront of these.

HSBC UK head of intermediary mortgages Chris Pearson (pictured) added that it was also customer behaviour driving the move into digital banking.

“The regulation that leads to the advent of Open Banking is potentially the most disruptive legislation ever, in financial services’s history,” he said.

“When we talk about disruption we can also talk about opportunity. It’s a big disrupter but it’s also a big opportunity.”




Have a digital strategy

Pearson urged brokers ensure their online strategy complimented their face-to-face approach with customers.

“You do not want an online strategy that’s far better or far worse than the way you do face-to-face, it needs to compliment it and be something that your brand and business stands for,” he said.

“And at least have a digital strategy.”

He added that advisers should make sure they targeted emails, making them personal and unique.

“Product transfers are a classic example, get in well ahead of time, make it unique and timely, anticipate those needs,” he continued.


Not VHS vs Betamax

Pearson also noted that there was not likely to be a Betamax or VHS-style battle to decide the definitive technology in the mortgage market.

“We’ll see a full ecosystem of fintechs starting to integrate using application programming interfaces (APIs) and other methodologies to work with your point-of-sale systems, your networks,” he said.

“That will mean no more re-keying, automatic validation of customers, contacting customers automatically through the journey of the product using technology.”



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