The Current State of #OpenBanking halfway through 2020
One of the most intuitive ways that we have to measure how disruptive a trend is, is to consider how equally it has been implemented across different markets. If this is very uneven, then this suggests that the trend is in its initial phases, where not everyone is quite sure about where they’re going or when to accelerate. Open banking is one such trend. Not only do we not see the same patterns across different geographical locations but we don’t even see the same patterns from one year to the next.
Specialist software company Finastra has recently published a global report which surveyed 774 prestigious organisations from around the world about the implementation and development of open banking’s main actions and KPIs.
The data is striking in many aspects. Firstly, according to the organisations surveyed, there is a huge difference geographically. In markets as disparate as the United States, Hong Kong or France, there is a certain consensus about its impact on customer service, but in the United Kingdom, this point of view is shared by just 20% of organisations.
What is the impact of Open Banking on your Organization in the last 12 months?
Secondly, there is an increasing perception that regulation is a form of interference which hinders or stops innovation. Around the world, almost half of the companies surveyed held this opinion, which is an increase of more than 25% on just one year ago.
In general, it is possible to see that Open Banking around the world is maturing, but it’s still very much going through the early stages. “We believe it will be the first step towards Open Finance which will see the next wave of innovation in financial services being created through collaboration on open platforms” notes the Finastra CEO, Simon Paris.
What technologies are you planning to improve or deploy in the next 12 months?
At GDS Modellica, we wanted to do our bit to share this information and identify some of the key points from the survey. So, we’ve put together an infographic. Here is the current state of Open Banking halfway through the year 2020.