The accountancy giant PwC is working with fintechs to build a digital banking ecosystem for banks and other similar lenders. The company has also brought together several cloud-based platforms using SaaS APIs for creating the new digital banking model. It will enable banks to reach more customers while reducing costs as they do not have to develop the technology in-house, it will be provided to them in the form of the digital banking ecosystem.

Credit Kudos is one of the key fintechs that is working on the platform. It is a challenger credit bureau providing an alternative way to measure creditworthiness by using open banking data and not historical borrowing information.

“PwC’s digital banking ecosystem is an important milestone in the banking sector as the power of open banking data gains momentum, and we’re excited to be a part of this journey,” said Freddy Kelly, Co-founder and Chief Executive, Credit Kudos.

“This is the start of an important and positive change to the financial sector, showing how financial institutions can evolve quickly and effectively through partnerships,” he added.

The recent analysis from PwC suggests technological step-changes in the banking sector, which are expected to boost the UK’s economy by GBP 34.6 bn by 2030.

Going ahead, Mike Kennelly, Director of Financial Services Technology Consulting, PwC, said, “The third wave of digitization is emerging where open APIs and open platform banking are rapidly changing the shape of financial services.”

This new wave of digitization suggests that all the legacy banks should move toward ecosystem banking where they can leverage third parties to extend their customer reach and implement the new disruptive business model. The best example of building its digital ecosystem bank and linking it with disruptive and innovative APIs is Credit Kudos.

It looks like ecosystem banking presents significant opportunities to incumbent banks; they need to join these emerging ecosystems sooner or later. If you want to absorb more details regarding this, learn more here.