European financial institutions are in general optimistic about open banking, but a risk of internal alignment could be holding them back, new data from Tink reveals.
Having surveyed 290 financial executives from 12 European countries together with YouGov, Tink found that 70% recognised the opportunities of open banking and 67% believed the benefits outweigh the potential costs.
While the researchers found that 63% of channel owners responsible for the online, mobile or developer interfaces, recognise the open banking opportunity across their organisation, only 45% of product owners feel the same way.
“Whilst fast-growing challengers in the industry continue to make moves, banks remain in the best position to offer integrated open banking services,” said Rafael Plantier, UK and Ireland country manager at Tink. “As custodians of money and providers of financial services they already have a solid foundation of customers that trust them and are therefore willing to share data.
“However, we should not underestimate the enormity of the task that financial institutions face in transforming their operations to become open banking ready. It is to be expected that there are differing levels of buy in for open banking across the organisation, and pockets of the business that may lag behind in embracing the opportunity.
“As those in the C-suite evolve their open banking strategy, there is opportunity to fill possible knowledge or culture gaps to ensure alignment. Whether it be through strategic fintech partnerships, acquisitions or internal re-alignment, banks can ensure they are well placed in the race to create the best possible customer experience from open banking.”
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