Why banks need an open banking quarterback: compliance, coordination, and competitive edge

The financial services landscape is undergoing a seismic shift. While some predicted regulatory compliance as being a major driver for modernization and the need for financial institutions to act on the opening-up of their data and services, recent political developments have caused confusion and downright turmoil. Yet, business decisions can remain focused on the key challenge: how to remain ahead of the curve and stay healthy and competitive in a fast-changing digital financial landscape?

In 2025, financial institutions are increasingly focused on personalized customer experiences, integrating AI and automation, digital currencies, and sustainable finance practices. There’s also a growing emphasis on cybersecurity.

Notice how these concerns and objective areas cut across many areas of business planning and operations. Strategy is important, and an Open Banking / Open Finance strategy with API connectivity at its core can be a game-changer. Why? Connectivity is the enabler – APIs to package and simplify the technical integration effort on one end and new and improved business connections on the other end.

Who in an organization can help coordinate all these strategic efforts and prevent wasted time and money on siloed and disjointed effort?

Enter the open banking quarterback.

What is an open banking quarterback?

Much like a quarterback on a football team, the open banking quarterback is the central leader who reads the field, calls the plays, and ensures everyone — from compliance teams to IT, data governance, product development, and customer experience — is aligned and executing on the same leadership-driven strategy.

This role coordinates the various teams and puts a central game plan in practice around how data access is managed, how APIs are developed and secured, how third-party relationships are evaluated, and how customer experience is reimagined through data transparency and portability.

Why is this role so essential now?

1. The CFPB is actively working to repeal the Final Rule on Section 1033

Despite recent regulatory moves, it remains paramount that financial institutions give consumers easy, free access to their financial data to support future regulation. It’s no longer enough to allow data sharing via screen scraping or third-party aggregators. Banks must stand up secure, standards-based APIs that give customers control over their data.

A quarterback is essential to ensure:

• APIs are built according to industry standards (e.g., FDX).
• Data access protocols are secure and compliant.
• Internal and external stakeholders are aligned on implementation timelines.

Without central coordination, banks risk siloed execution, compliance gaps, and customer confusion.

2. Fragmentation will be punished, not rewarded

Modern banking runs on ecosystems — apps, fintech integrations, real-time payments, and AI-driven insights. Without a coherent data-sharing strategy, banks will fall behind more agile competitors. The quarterback role ensures the institution’s open banking strategy isn’t fragmented across departments or vendors.

They help answer critical questions like:

• What data should we share?
• With whom?
• How do we vet and monitor third-party access?
• How do we educate and support customers in using their data?

3. It’s no longer about compliance — it’s a competitive opportunity

Now that established regulatory rules and timelines look like they may go away, what a bank does now can be a source of differentiation. Forward-thinking banks are using open banking to:

• Launch new data-driven financial wellness tools.
• Streamline customer onboarding by integrating with external data sources.
• Personalize experiences using aggregated financial data.
• Enable smoother lending processes with instant income and account verification.

A quarterback enables these innovations by guiding the bank to move from defensive compliance to offensive strategy.

4. Coordination reduces risk and cost

Without a quarterback, different parts of the organization may take redundant or conflicting approaches to open banking. This leads to:

• Increased vendor sprawl and potential vendor lock-in.
• Duplicated infrastructure and increased security risks.
• Unnecessary regulatory exposure leading to potential financial penalties.

Central coordination helps streamline vendors, reduce development costs, and mitigate reputational and operational risks.

See also Goodbye Screen Scraping, Hello Open Banking: The Future of Finance

Final thoughts: compliance is the floor, strategy is the ceiling

Open banking is no longer an optional innovation — it’s a fight to stay relevant and modern. But how a bank responds will separate leaders from laggards.

The institutions that embrace an open banking quarterback — someone to coordinate efforts, ensure compliance, and drive customer-centric innovation — will not only meet potential regulatory requirements but gain a sustainable competitive edge.

If your organization doesn’t have a person “on the open banking field” in the quarterback role, there is a risk that efforts will be misaligned, and strategic alignment won’t be there to gain the full competitive benefits. Look to senior team players who can step up and bridge the gaps between business product teams and IT teams.

Banks that treat open banking as a strategic priority will position themselves to win in a more open, data-driven financial future.