Business Express is an online portal that covers the latest developments in the world of business and finance. From startups and entrepreneurship to mergers and acquisitions, Business Express provides reporting on the stories that matter most to business leaders and decision-makers.The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
iStock 1154923171 - Business Express

Facilitating the Future of Open Finance: Nearly half of all large institutions in the finance industry have already adopted Open Banking


 

New research from Curity shows nearly half of all large institutions in the sector have already adopted Open Banking, with nearly three-quarters (70%) planning to adopt in the next 18 months  

London, UK 14 June 2022: Nearly half (43%) of all large financial institutions have already adopted Open Banking according to a new report from API-driven identity management company Curity.

The ‘Facilitating the Future of Open Finance’ report surveyed 200 global financial institutions and employees who are managing the Open Banking process. The report reveals that the top three motivators for adopting Open Banking are to increase competitiveness (58%), to deliver new products and services (55%), and to meet customer demand (48%).

Despite these significant drivers for the Open Banking initiative, the results also show some hesitation regarding its adoption. Reasons for hesitation include compliance and security risk concerns (61%), a skills and knowledge shortage (51%) and changing business priorities (45%).

Curity’s findings come amid the fourth anniversary of the launch of PSD2, which made Open Banking a regulatory requirement in the UK. According to the Open Banking Implementation Entity (OBIE), there are now 4.5 million regular users of Open Banking.

With the exponential interest in Open Banking, the global Open Banking market is expected to reach $43.15 billion by 2026 according to the report published by Allied Market Research.

Don't miss out on any breaking news or insightful opinions!
Subscribe to our free newsletter and stay updated on the go!


By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email.

With customer acceptance growing, the fact that nearly three-quarters of organizations surveyed (71%) plan to adopt Open Banking in the next 18 months demonstrates the importance of continuing to build robust technical solutions, meet regulatory requirements and preserve business integrity. 

The largest security concern amongst financial enterprises is outdated systems that don’t support data sharing (62%), meaning they are unable to comply with new data protection regulations that are imperative to new Open Banking products and services. 

Travis Spencer, CEO at Curity, said: Our new report offers a level of insight that is crucial in understanding Open Banking and the impact it will have on financial institutions in the foreseeable future. 70% of financial institutions surveyed are planning to adopt Open Banking relatively soon so they must understand the regulatory requirements and security necessary to be successful.”

Nearly all financial institutions (96%) believe consumer adoption is crucial to the future of Open Banking. Organizations must communicate with customers in simple and concise ways about data privacy without relying on jargon to overcomplicate matters, ensuring customers feel confident in the way their data is handled and managed within the Open Banking process. Understanding the deployment of modern authentication methods is key to consumer adoption, according to over half of those surveyed (56%).

The Future of Open Banking is clear for financial institutions of all sizes if they are willing to embrace it. Larger enterprises have led the way with nearly half of those surveyed (43%) already adopting the technology but there are still opportunities to encourage smaller organizations to adapt and move forward with innovation for years to come.

 

Recent Post: