This survey is based on the opinions of over 300 global banking executives
Temenos and the Economist Intelligence Unit have found that 45% of business executives are set on transforming their business models to become digital ecosystems. Meanwhile, almost a third have strategies for open bank hub initiatives.
At the time when banking data is beginning to flow, the global revolution in open banking is a work in progress, and customer experience and confidence are key to unlocking its true potential.
The pandemic has boosted open banking and the financial technology ecosystem. The report states that incumbent banks could be the biggest beneficiaries, provided they adopt adequate technology strategies to compete with nimble new entrants.
It also found that open banking could benefit banks by making it easier for them to leverage their own data internally for better service personalization, a top priority for nearly a third (32%) of respondents.
Regulation has been the main driver in many regions, notably Europe and some Asian and Latin American countries. In others, open banking has evolved owing to market forces and new competitors such as e-commerce giants in China and nimble challengers in the US.
The UK is leading the way in open banking due to regulatory requirements and a dedicated central program and platform, the Open Banking Implementation Entity, funded by the country’s 9 biggest banks. Australia, Mexico, and Brazil have also introduced open banking legislation, while Canada has started the second phase of its “consumer-directed finance” consultation.
The report cautions, while 87% of countries reportedly have some form of open APIs in place, the evolution of open banking depends on customer confidence in sharing their data, interoperability, enhanced user experience, and actual added-value of products and services for customers.
We’ve reported that less than a third of Brits contact bank customer service.