Partnerships stimulate further innovation financial sector 

Unlike previous editions, in which we only covered the banking sector, the fifth edition also focuses on insurers and pension organisations. Furthermore, this new analysis provides insight into the various strategic considerations for entering into a partnership. We also looked at the expected impact of GenAI and Open Finance on the various ecosystems.

Reasons for entering into partnerships vary by sector

The financial sector has undergone multiple transformations in recent years. To respond to these trends,  the Dutch banks, insurers, and pension service providers have entered into a variety of partnerships over the years. In 2023 the Dutch banks, insurers, and pension organisations entered into 46, 20, and 13 new partnerships respectively. When we consider the size of the ecosystem and the strategic relevance of the partnerships, the banking ecosystem landscape emerges as the most mature.

The main reasons for forming partnerships differ significantly between the banking, insurance, and pension sectors, as observed by Pieter Verheijen, customer transformation expert in the financial sector at PwC: ‘Banks primarily focus on improving their products and services when entering into partnerships, while insurers focus more on preventive strategies. In recent years, pension organisations have been focused on partnerships that contribute to the transition to the new pension system'.

Opportunities for financial institutions in an open data ecosystem

The European Union is currently taking steps towards an open finance and open data ecosystem with the aim of giving customers more control over their (financial) data. This will make it easier for consumers to share data with third parties. Pieter Verheijen states: 'It is expected that this shift will lead to innovative business models and customer experiences across the entire financial value chain. This can result in an increase in both the number and depth of strategic partnerships between financial institutions and third parties, as data sharing becomes easier.’ 

The introduction of PSD2 in 2019 marked the first step in this direction by granting third parties access to payment account information and initiating payments with consumer consent. The upcoming PSD3 directive, along with other initiatives such as the Financial Data Access (FIDA) regulations, will build on this foundation and gradually push the industry towards an Open Data ecosystem.

The impact of GenAI on future ecosystems

In line with the overall GenAI trend, the financial sector is increasingly making use of GenAI. This is also evident from new partnerships within the banking sector. In 2022, only six per cent of partnerships were related to GenAI, but by 2023, this had already increased to thirteen per cent. The expectation is that this percentage will continue to increase in the coming years. 

'The impact and possibilities of GenAI are multifaceted. In addition to increasing efficiency and reducing costs, technology offers financial service providers the opportunity to improve customer experience and promote employee creativity,’ says Verheijen. ‘The future of financial services is intertwined with the advancement of GenAI. To maintain a competitive advantage, players within the financial industry must determine how to effectively implement GenAI into their daily operations.’