Open business model implementation in financial industry: Case PSD2

Abstract

The aim of this thesis is to understand the challenges financial industry is facing, when adapting open business model into their current business model. The phenomenon of business model is growing rapidly and the open business model opportunities are boosting businesses around the world. There are two themes in this thesis, first is the business model concepts and how they are defined and discussed in the literature and the second part is about open business model adaption in the financial sector. Based on literature and interviews, challenges that industry is facing are regulatory and cultural. Regulatory side can be seen as not so equal to the newcomers and the cultural problems are industry specific, where everything is related to risk management.

Adapting the open business model has also favourable value creation benefits, which are efficiency, customer behaviour changes and experimentation opportunities for boosting current business models and creating new ones. Current development in the industry is showing that financial institutions are diversifying their business models, transactional models are becoming an important part for sustainable growth.