Digital Transformation: Open Investment Banking & API-driven Institutions


API-Driven Connectivity is the Foundation of a Digital Investment Bank

This report explores how Open Investment Banking – making systems, functions and data from the bank’s technology stack available to clients – forms a core function of Digital Investment Banking. The report explores key elements of a successful digital transformation as relevant for Open Investment Banking, incorporating both cultural and technological perspectives. At the heart of the challenge lies the objective of subsuming commercial and investment bank (CIB) products and services into the client workflow.

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The post-financial crisis era rendered historic CIB business models, particularly the universal banking model, uneconomic for the majority of Tier I, Tier II and Tier II institutions. To remain competitive going forward, these must pivot toward Digital Investment Banking, which relies on the shift of four core investment bank premises:

  • The business model shifts from push to pull;
  • in place of sales, technology becomes the driver of success;
  • the business’ focus shifts from products to services; and
  • delivery moves off proprietary infrastructure to innovative mechanisms and an outsourced supply chain.

Currently, CIBs struggle to support Open Investment Banking models that meet the interoperability and connectivity requirements of DIB and thus act as the engine for holistic institutional change. GreySpark observes the increasing priority of relevant technology design qualities and functionalities, with the interoperability and modularity rapidly becoming competitive differentiators both for technology vendors and CIBs selling to capital markets participants.

This reports examines both investment banks’ preparedness and progress in implementing the cultural and technological foundations of Open Investment Banking as well as the changing vendor landscape designed to meet CIB’s future connectivity and interoperability requirements. In doing so, the report argues that assertions of the impossibility of such comprehensive change within the capital markets industry are, in 2020, demonstrably false in light CIB and vendor accomplishments.

Published on: 27 Jan, 2020


  • 1.0 A Foundation for Digital Investment Banking
    • 1.1 Sellside Positioning
    • 1.2 Partnerships & Interoperability
  • 2.0 Current Core Technology Capabilities
    • 2.1 The Sellside
    • 2.2 Fintech Vendors
  • 3.0 Is Open Investment Banking Credible?
    • 3.1 Functional Lag
    • 3.2 Buyside Buy In
  • 4.0 Appendices
    • 4.1 Table of Figures

Report Data & Figures

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