Completing Open Banking objectives could take 10 years, say Euro FIs

New research has found that over one in three financial executives expect their institutions to take more than a decade to complete their Open Banking objectives.

According to a study from European Open Banking platform Tink, which surveyed 308 executives across 12 countries, a further 40 per cent predict it will take around five to 10 years to finalise their Open Banking plans.

Despite this, positive sentiment of respondents towards Open Banking has risen from 55 per cent in 2019 to 71 per cent in 2021.

Of those surveyed, executives in Spain (37 per cent), Italy (34 per cent), and France (30 per cent) were most optimistic about their open banking timescales - predicting their institutions’ objectives can be completed in under five years.

In the UK, executives are positive about the completion of their Open Banking objectives, more than a quarter expecting their institution to deliver on its objectives in under five years.

The research suggests that challenger banks and wealth management firms are most optimistic when it comes to timescales, with 75 per cent and 74 per cent respectively predicting their institutions’ open banking objectives can be achieved in under a decade.

At the more cautious end of the scale, only 55 per cent of mortgage providers, 56 per cent of credit providers, and 57 per cent of payment service providers believe they can reach open banking maturity within a decade.

“As an early pioneer of open banking, it’s exciting to see our predictions come true, as the vast majority of European financial institutions are eager to embrace open banking’s true potential,” said Daniel Kjellén, co-founder and chief executive, Tink. “But we know an open banking revolution won’t happen overnight and we recognise that the pace of change may be slow as institutions grapple with complex transformation projects that could take over a decade to deliver.”

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