# Open Banking is a Game Changer for Millennials, New Survey Finds
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2017-04-18
Category: BANKING
Category URL: https://financedigest.com/category/banking
Meta Title: Open Banking Survey: Millennials to Impact Bank Customer
Meta Description: Discover how open banking is reshaping the consumer banking landscape. Learn how predictive analytics and machine learning will be key to winning over customers
URL: https://financedigest.com/open-banking-is-a-game-changer-for-millennials-new-survey-findshtml

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- Most Millennials will use a single portal to aggregate services from multiple banks – eroding banks’ existing customer relationships.
- Most bankers believe predicative analytics and machine learning will become the most powerful way to win bank customers over next five years.

_Tel Aviv, London, Wednesday 12th April 2017:_ Most bankers believe open banking will have a dramatic effect on the market structure and competitive environment for consumer banking services. Nearly 90% believe that Millennials will be using banking services from a variety of providers that are accessed through a single aggregation portal, significantly [impacting the relationship banks](https://www.financedigest.com/digitisation-of-banking-the-impact-of-digital-money.html "Digitisation of Banking: the impact of digital money") currently enjoy with their customers.

[Earnix](http://www.earnix.com/), a leading provider of predictive analytics solutions for the financial services industry, today announced results of a survey conducted in January of 300 UK and European bankers focused on how open (API) banking will affect their business, and their ideas on how they will need to adapt to the new competitive landscape.

**[Banks Will Need to Overhaul Their Pricing](https://www.financedigest.com/hsbc-ups-price-targets-on-greek-banks-with-eurobank-piraeus-top-picks.html "HSBC ups price targets on Greek banks, with Eurobank, Piraeus top picks") and Value Models**

[Open banking is part of the Payments](https://www.financedigest.com/why-ev-charging-stations-need-to-accept-open-cashless-payments.html "Why EV Charging Stations Need to Accept Open Cashless Payments ") Services Directive 2 (PSD2) that comes into effect in January 2018. It requires financial [institutions to make customer data](https://www.financedigest.com/three-layers-of-hybrid-workforce-data-for-financial-institutions.html "Three Layers of Hybrid Workforce Data for financial institutions") available to third parties, enabling customers to construct hybrid services from a variety of providers. 72% of the bankers surveyed think that this will significantly diminish their existing customer relationships, making it more difficult to cross-sell financial services. Given this, 75% think that their bank will need to overhaul their pricing and [value models to maintain market share](https://www.financedigest.com/rare-neurodegenerative-disease-treatment-market-value-share-supply-demand-share-and-value-chain-2021-2031.html "Rare Neurodegenerative Disease Treatment Market Value Share, Supply Demand, share and Value Chain 2021-2031").

**Analytics and Machine Learning Will be the Most [Powerful Tools to Win](https://www.financedigest.com/italys-right-wing-parties-seen-winning-power-exit-polls.html "Italy’s right-wing parties seen winning power – exit polls") Customers**

Bankers almost unanimously (93%) believe that [open banking](https://www.financedigest.com/open-banking-the-game-changer-in-digital-finance-products.html "Open Banking: The Game-Changer in Digital Finance Products") will bring a deluge of new customer data that will revolutionize how analytics will be used to create more customer-centric financial services. 73% believe that predicative analytics and machine learning will become the most powerful means through which to [win bank](https://www.financedigest.com/banking-crisis-breakthroughs-win-nobel-economics-prize-for-bernanke-diamond-dybvig.html "Banking crisis breakthroughs win Nobel economics prize for Bernanke, Diamond, Dybvig") customers over the next five years.

Commenting on the survey finding, Earnix CEO Udi Zivsaid: “Open banking is a game-changer for the financial [services industry](https://www.financedigest.com/how-digital-identity-verification-will-revolutionize-security-defenses-in-the-financial-services-industry.html "How Digital Identity Verification Will Revolutionize Security Defenses in the Financial Services Industry"). [Traditional banking services](https://www.financedigest.com/the-role-of-fintech-in-disrupting-traditional-banking-services.html "The Role of Fintech in Disrupting Traditional Banking Services") will be redefined, becoming more personalized and customer-centric. We believe that incumbent banks have a unique opportunity to excel in this new environment, and we are helping them deploy advanced analytics that leverages the gold [mine of customer data](https://www.financedigest.com/demand-for-lifesciences-data-mining-and-visualization-market-to-surpass-us-6000-mn-by-2026.html "Demand for Lifesciences Data Mining and Visualization Market to Surpass US$ 6,000 Mn by 2026") they already have.”

To download the full report and infographics go [here](http://pages.earnix.com/the_new_age_of_banking.html?src=PR).

**Summary of key data from survey:**

- 80% of bankers [expect a significant increase in competition over the next](https://www.financedigest.com/the-death-of-cards-and-what-to-expect-next.html "The death of cards and what to expect next") five years as a direct result of open banking
- 88% believe that most millennials will be using banking services from a variety of providers that are accessed through a single aggregation portal
- 72% of bankers [think open](https://www.financedigest.com/three-must-do-think-about-before-opening-a-company-in-hong-kong.html "Three Must-Do Think about Before Opening a Company in Hong Kong") banking will significantly diminish their existing customer relationships, making it more difficult to cross-sell financial services
- 75% of bankers think that their bank will need to overhaul their pricing and value models to maintain [market share](https://www.financedigest.com/oryzanol-market-share-size-analysis-growth-industry-statistics-and-forecast-2028.html "Oryzanol Market Share, Size, Analysis, Growth, Industry Statistics and Forecast 2028")
- 93% of bankers believe that open banking will bring a deluge of new customer [data that will revolutionize how analytics will be used to create more customer-centric financial services](https://www.financedigest.com/financial-services-and-data-how-do-we-meet-the-challenge.html "Financial services and data – how do we meet the challenge?")
- 73% of bankers believe that predicative analytics and machine learning will become the most powerful means through which to win [bank customers over the next](https://www.financedigest.com/explainer-why-is-bank-of-england-acting-again-what-next-in-the-uk-crisis-2.html "Explainer-Why is Bank of England acting again? What next in the UK crisis?") five years


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