UK financial institutions amongst most positive in EU toward open banking
New data published by open banking platform Tink reveals that financial institutions in the UK are embracing the open banking opportunity more readily than their European counterparts. The survey, based on 290 senior decision makers at financial institutions in 12 European countries, found that three quarters (74%) of UK financial institutions today say they are positive about open banking, compared to a European average of 61%.
Of all countries surveyed, the UK also reports the most significant shift in attitude towards open banking – with 73% of UK financial institutions now more positive towards open banking than they were 12 months ago, against a European average of 52%.
Two thirds (67%) of UK respondents believe open banking is viewed as an opportunity in their organisations, against a EU wide average of 59%. Similarly, 70% of UK financial institutions have a clear strategy in place for open banking – considerably higher than the European average of 58%.
Rafael Plantier, UK & Ireland country manager at Tink, said: “The UK has been trailblazing open banking since the 2017 CMA mandate to open up the market and drive greater competitiveness in financial services. This has given open banking a tailwind in the UK that means as a market it is charging ahead of the rest of Europe.
“However, it’s fair to say that the last two years have been exhausting for the UK’s largest banks — with the pressures of open banking compliance and Brexit preparations. Yet today, we see a more positive change in attitude towards open banking, with projects moving away from compliance towards new propositions and use cases. With the vast majority of UK financial institutions now having a clear strategy in place to realise open banking’s benefits, we are also seeing a growing desire to act now to take advantage of the immediate opportunities for value creation.”
Those at the forefront of open banking in the UK see fintech partnerships as a top priority. One in three (33%) UK financial institutions already have at least one fintech partnership already in place. In the last 12 months, 50% of UK financial institutions already in a fintech partnership indicate an increase in partnerships, and more than a third (37%) are prioritising more fintech partnerships over the coming year.
Rafael Plantier, UK & Ireland country manager at Tink, continued: “Increasingly UK financial institutions want access to data and technology that allow them to build innovative new propositions at scale – often for a wider array of use cases beyond the limits of the current PSD2 regulation. Building successful and strategic partnerships with fintechs can help them realise this ambition.”
Plantier concludes: “One of the promises of open banking is making financial services more digitally accessible to both consumers and businesses alike. With cororavirus accelerating the shift toward digital channels, we expect positivity towards open banking to continue to grow as more financial institutions concentrate on the digital transformation of products and services. As a result, we anticipate a range of new open banking use cases to emerge that deliver immediate value to businesses and consumers alike by enhancing customer engagement and improving access to services.”
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