Open banking: Should I build or partner?

The open banking market presents both opportunities and challenges for fintechs and businesses. To navigate this space, they must consider whether to build or partner on their initiatives, particularly when it comes to accessing consumer financial data through Application Programme Interfaces (APIs). The choice depends on various factors, including regulatory requirements, cost implications, speed to market, and business goals. Building one's own APIs can be time-consuming and costly, while partnering with a third-party provider (TPP) or technical service provider (TSP) offers alternative routes to market, including reduced costs and faster deployment times. However, building an API also provides the opportunity for competitive advantage, but at the cost of staff resources and expertise. Ultimately, the decision depends on the firm's specific circumstances, priorities, and goals.