Nocashevents Although open banking is more popular than ever, European financial institutions say it may take over a decade to complete open banking objectives

Although open banking is more popular than ever, European financial institutions say it may take over a decade to complete open banking objectives

Tink survey of financial executives shows open banking is more popular than ever. The share of executives feeling positive towards open banking increased from 55% in 2019 to 71% in 2021. More importantly, it is now widely considered a higher priority area with 8 out of 10 financial executives (83%) saying that it represents a revolution (rather than an evolution) for the industry. In spite of growing positivity, the complete implementation of open banking will take financial institutions many years to realise.

The survey of 308 executives across 12 countries found that four in ten (40%) believe it will take their institution between 5-10 years to realise its open banking objectives, and a further 37% believe it could take over a decade. These cautious timescales reflect the size of the task at hand, with many organisations embarking on complex, large-scale open banking transformation projects that will take several years to realise.

Of those surveyed, executives in Spain (37%), Italy (34%), and France (32%) were most optimistic about their open banking timescales – predicting their institutions’ objectives can be completed in under five years. This reflects a more limited scope for open banking strategies in these markets, focusing on short term compliance-based use cases rather than larger scale open banking transformation projects.

Meanwhile, with the UK a trailblazer for the open banking movement, it is unsurprising that its executives are positive about the completion of their open banking objectives, with over one in four (28%) expecting their institution to deliver on its objectives in under five years.

When examined across sectors in Europe, challenger banks and wealth management firms are most bullish when it comes to timescales, as 75% and 74% respectively believe their institutions’ open banking objectives can be achieved in under a decade. At the more cautious end of the scale, only 55% of mortgage providers, 56% of credit providers, and 57% of payment service providers believe they can reach open banking maturity within a decade.

Download the full report: The open banking revolution