A new research published by Tink reveals that despite the growing propensity towards open banking, its complete implementation will require many years for financial institutions to be implemented.
The survey of 308 financial managers in 12 European countries revealed that 40% of these companies will take their organisation from 5 to 10 years to achieve their open banking objectives, and a further 37% believes that it could take more than a decade. These cautious times reflect the scale of the work put into play and show how many organizations are embarking on complex large-scale transformation projects that will take several years to be implemented.
Looking at the various sectors, challenger banks and asset management companies are the most optimistic when it comes to timing, as 75% and 74% respectively believe that the open banking objectives of their institutions can be achieved in less than a decade. At the most cautious end of the scale, only 55% of loan providers, 56% of credit providers and 57% of payment service providers believe they can reach maturity within a decade.
Italy. In Italy, 23% of financial managers predict that it will take more than a decade to complete the open banking goals. Another 43% think it will take 5-10 years, and 34% think it will take less than 5 years.
Italy is one of the most optimistic countries in Europe about the times of open banking. This reflects a more limited scope of strategies in this market (as well as in Spain and France), where there is more focus on short-term use cases based on compliance than on large-scale open banking transformation projects.
Open banking: a revolutionary force in the sector
While legacy infrastructure and technological challenges could slow down the pace of transformation generated by open banking, the survey shows how Italian financial institutions are willing to embrace its benefits as soon as possible. More than three out of four Italian financial managers (77%) believe that open banking is having a revolutionary effect on the financial services sector, and the positive feeling towards open banking continues to grow in Italy • 57% in 2019 to 71% in
According to Tink, the financial institutions in Belgium (87%), the Netherlands (85%) and the United Kingdom (81%) are the most likely to be in the open banking sector. And that is not surprising, because what all three markets have in common is a competitive and innovative financial services ecosystem with a relationship of collaboration between TPPs and historical financial institutions.
Financial institutions throughout Italy, however, are beginning to understand the benefits of open banking • recognizing how immediate business opportunities can be obtained by improving customer experience (according to 36% of respondents), launching new digital services (for 35%) and increasing