(FS.8.03) Open Banking The movement toward open banking and open APIs will only increase the speed of change as fintech business models and technologies allow them to align with new opportunities very quickly. The UK's efforts to implement Open Banking have had zero positive impact on innovation in the banking sector. An open banking standard will create an ecosystem that allows financial technology (fintech) firms to use customers' financial data in innovative ways to provide a range of value-added services to consumers. By 2025 having an open banking strategy is going to be dominant - not without challenges - unsurprisingly around how data is used and educating customers on data security. Open banking will change the way that consumers interact with their financial data in 2018, giving them greater flexibility and choice. APIs and Open Banking will start to shift the banking landscape with more traction in Europe and Asia. UK banks will be required to implement the Open Banking Standard by 2018. UK consumers and businesses will see £18 billion ($22 billion) in additional value annually because of the increased levels of service and competition brought about by open banking. The new Open Banking regime in Australia will shake up competition for consumers and boost start-ups against the big banks. With the rapidly approaching introduction of open banking, the next few years will usher in changes that will fundamentally shift the Australian financial services landscape. Open Banking could realise £18 billion value for people and small businesses in the UK over the course of a year. Commercial customers are just as enthusiastic - 35% say they already participate in Open Banking and another 42% plan to this year because they think it will provide more innovative processes and a better customer experience, especially in payments and cash management. Open Banking could realise GBP18 billion value for people and small businesses in the UK over the course of a year. Open Banking is all about the user / customer experience and given the ubiquity of seamless services in other sectors, led by the likes of Amazon, Google, Uber and their contemporaries, 2019 will see the banking sector try to keep pace and keep customers. Australia's major banks will be forced to make banking data available to consumers from the start of the 2020 financial year, under a new open banking regime agreed upon by the federal government. Time poor SMEs want easy banking, so that they can concentrate on running their businesses effectively: If banks can capture their interest and offer them personalised services, there could be £8.5bn for banks to gain in new revenue streams by 2020. 66% of financial decision-makers feel that technology giants such as Google and Amazon will offer retail banking services in the UK in five years because of Open Banking. The first big trend within the FinTech sector this year will undoubtedly be the impact of Open Banking, which requires banks to make their consumer data available to third parties through APIs. The UK policy makers have been more keen on Open Banking than Brussels and want to foster their fintech sector, so they will not be naturally inclined to go backwards. Most banks are planning major investments in open banking initiatives by 2020, and two thirds of bank executives stated that open banking will help create new revenue streams. PPRO predicts that real-time bank transfer payment methods, like Pay-by-bank-app and new Open Banking / PSD2 - based payment initiation methods will grow significantly in the UK over the course of the next two years. Japan's Financial Services Agency expects its banks to have open APIs in place to make data available to third parties by 2020. See full forecast Last updated: 28 May 2020 Hi, Would you like a quick online demo of our service from an experienced member of our team? Yes No
