The digital transformation that banks have been going through will intensify to a whole new level in 2018, when PSD2 comes into force; ushering in the era of open banking.

This shift will require banks to be more integrated with the wider digital and fintech economy, having the ability to share customer data quickly and securely through APIs.

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In order to do so, they will need to fully leverage the core systems of record that are responsible for processing payment transactions and customer account information, and ensure they can integrate seamlessly with the new third-party services now calling on them.

As a result, we can expect to see a great deal of investment in modernising the mainframe environment in the coming year. This does not mean re-platforming; rather, banks can adopt modernised developer tools, cultures and techniques that enable non-mainframe experts to flawlessly update core applications quickly and build out the ecosystem needed to make open banking a success.

We can also expect to see banks looking to extend their performance monitoring capabilities to encompass the mainframe more than ever over the course of the next 12 months.

This will be essential if they are to ensure they can identify the root cause of problems that arise with complete confidence and aren’t left vulnerable to taking the blame for failed third-party transactions.

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Finally, given that open banking will provide third-parties with access to sensitive payments and account information, banks will look to build out their ability to maintain a record of how and where customer data is being used, which APIs are requesting it and for what purposes it is being called upon; so they can provide a full record of data use and access if required.

Steven Murray is Solutions director at Compuware