(8.03) Open Banking 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. The use of application program interfaces and open banking initiatives across the world are expected to make big waves in B2B payments. Regional regulatory initiatives such as PSD2 in Europe, Hong Kong's Open API framework and launch of Australia's New Payments Platform will transform how banks, financial institutions and payment service providers capture and share customer data. The concept of Open Banking will have profound ramifications for consumers and businesses in both the UK and Europe. The launch of open banking will be a turning point for large retail banks in the UK. Open Banking will unite banks and FinTech in creating a new world. Open Banking will help make Britain one of the best places in the world to bank and will stimulate the digital economy. Open banking will force the UK's nine largest banks to share their data with licensed startups (subject to the approval of account holders). PSD2 and open banking represents a huge opportunity for change and innovation in the coming year. Under open banking, consumers and corporate customers of banks will need to give their consent to share their data with third-party API providers. Nearly two-thirds (63 percent) of banks in North America believe that implementing Open Banking is critical to competing with new entrants and will help banks remain relevant, compared to half (51 percent) of executives surveyed in Europe and two-fifths (40 percent) in Asia Pacific. See full forecast Last updated: 22 October 2019 Hi, Would you like a quick online demo of our service from an experienced member of our team? Yes No
