Open banking is disrupting the banking area but it can be perceived in two ways. Some banks interpret it the way that they just publish their open APIs that can third-party providers use. The second alternative is much wider and includes opening whole banking infrastructure for third parties. This makes it possible for them to develop innovative products for end customers.

Customers are getting the opportunity to use to use new applications along with internet banking that are not developed by their bank but third-party companies. We can see this as a nuw business model bringing added value.

FinTech Roadmap

For every area of FinTech, we create a strategic table in which we identify incoming trends, key factors, challenges, and comparison of the state in the Czech Republic to other countries to provide companies an overview on how to implement the newest technologies.

Incoming trends Key factors Challenges Comparison to other countries
Cloud solutions improve efficiency and scalability Legacy infrastructures are hard to scale, cloud services ensure agility of products, self-maintenance of infrastructure may be costly The frictionless transition from legacy to cloud It is gradually beginning to appear in CR
Challenger banks are hitting profits Starling is the firs on profitable, Revolut has broken-even Keeping the profits while acquiring new clients No challenger bank is Czech
Banks are using AI to detect money laundering activities A substantial part of GDP is laundered every year, stricter fines Reviewing the transactions is a complex process, keeping the good reputation It is gradually beginning to appear in CR
Open X a banking ecosystems New distribution channels, better customer experience and higher value-added, new customer needs, new technologies, regulations, competition Making cooperation of FinTechs and banks more successful It is gradually beginning to appear in CR, eg. KB Smart solutions
BigTech, challenger banks, and neobanks are entering the markets Legacy business processes and high operational costs of traditional banks Traditional banks should utilize their natural advantages, products should be more focused on customers They are beginning to offer their product in CR
Banks could use the blockchain technology Slow international settlements This technology is still young and not enough regulated yet This is mainly international