Open bancassurance: so much more than PSD2
The world is changing rapidly all the time – and the banking and insurance sector is no exception. The Revised Payment Services Directive is an EU Directive (PSD2) that encourages banks and insurance providers to work together on behalf of their end customers. It is hoped that this will lead to an open banking and insurance landscape where banks, fintech companies, insurance companies and other organisations work together to improve their existing services and create new ones for their customers. The result: a whole new world of opportunity.
The customer is at the heart of the corporate strategy and company culture of KBC. With this in mind, we embrace all innovations that are able to improve our customer service, our commercial proposition and the dialogue we have with our customers. As well as welcoming innovation, KBC is actively working to make the banking and insurance sector an open one.
The advent of PSD2
KBC commenced with the development of the PSD2 APIs – as required by the EU – in 2017. Although we offered our PSD2 APIs in a specially created portal for developers, their usage proved to be limited.
Fintech companies are currently facing a difficult situation. Current legislation has set out certain obligations, yet a lack of uniformity on the market is leading to delays. The majority of banks and insurance providers did not manage to provide stable, functioning APIs by the deadline stated in the PSD2 (14 September 2019).
The PSD2 legislation may have prompted the emergence of an open banking and insurance ecosystem, but it is digitisation that will blur the boundaries between the various economic sectors.
Thanks to digitisation, many companies are now able to offer new products and services that provide customers with added value and increase revenue. This is set to have a significant impact on the financial and insurance sector. Financial and insurance services tend not to be a consumer's primary focus. When a customer buys a product, financial services should be sold together with the product that require as little input on the part of the customer as possible.
More than banking and insurance services at KBC
KBC has since invested in its own digital channels to ensure an exceptional customer experience. Our award-winning app for mobile banking, KBC Mobile, is at the core of this strategy. KBC customers can now use KBC Mobile to buy bus and train tickets, pay for parking spaces, manage the balance of their meal vouchers, etc. KBC is aware that a whole new world of services is opening up, and is broadening the scope of its own services well beyond the limits of banking and insurance.
Offering banking and insurance solutions outside KBC
KBC is continuing to expand the services it provides to its customers. However, relying exclusively on our own distribution channels would be too limiting. Have you ever bought a house and thought about how great it would be to take care of the whole process – from buying the property to taking out a mortgage and insurance policies – at the same time from a single source? Open bancassurance paves the way for information to be exchanged more effectively between organisations. And the possibilities go well beyond that.
By offering its solutions via partners in other sectors, KBC is able to focus on the customer on an all new level.
The future looks good for co-creation between KBC and fintech companies and other non-financial partners. KBC can close the circle for its customers by consolidating an array of different services. These days, we all want to benefit from direct, personal, relevant services and one-stop shops. KBC wants to offer its services to prospective customers and partners, and we are ready to develop these services together
Open bancassurance in practice: APIs
In a united open banking and insurance landscape, exchanging information securely is a top priority. The majority of information is set to be exchanged via API connections. KBC wishes to offer APIs for a wide range of KBC products and services, so they will serve as a catalyst for open bancassurance. A useful overview of API solutions is available on our Developer Portal. Still, we're looking beyond what is already available to see what is possible in the future. We urge our partners to consult with us on any requirements they may have as they continue to develop their services.
Enter the world of open bancassurance
If you are looking to improve your customer journey using a KBC product or service, please take a look at our business solutions page or get in touch with us.