Open Finance Erodes Banks’ Primary Account Advantage

Banks have traditionally relied on the “primary account” — the place where customers receive income, pay bills and conduct routine transactions — to anchor relationships and sell deposits, credit and investment products. That advantage is weakening as consumers spread their money and financial activity across multiple banks, brokerages and fintech apps, leaving any single provider with only a partial view of their finances.

The latest report says open finance is exposing the limits of that model. With customer permission, banks and fintech companies can combine data on deposits, borrowing and investments held elsewhere, helping them identify unmet needs and compete for more business. The report named no specific institutions, amounts or implementation date, but highlighted a strategic shift: advantage increasingly depends on access to and effective use of cross-platform data.