Open Banking was touted as the catalyst for increased innovation, but two-fifths of banks are worried about it and its regulation.

According to research from platform Tink, 39% of financial institutions see Open Banking regulation as the biggest current threat to their business model.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

In addition, 56% of them fear that loyalty from customers will be significantly reduced by Open Banking.

However, 68% of respondents recognised that financial institutions must now enhance their services to attract and retain customers. Also, three-fifths (61%) believed that financial institutions who only do the minimum required to comply with PSD2 will lose out to more innovative players.

Regulation problems

There are issues though. Regulatory compliance (91%), access to tech (91%) and access to talent (91%) topped the list of challenges.

Other hurdles included:

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
  • Finding and collaborating with new partners in fintech (90%);
  • Technology and modernisation (88%);
  • Overcoming resistance from internal stakeholders (87%), and
  • Commercialising Open Banking opportunities (87%).

Daniel Kjellén, co-founder and CEO of Tink, said: “Technology has torn down the barriers to data and created an opportunity for everyone – incumbent banks, fintech challengers and developers – to build great products. PSD2 and Open Banking regulation are acting as a rubber stamp for this movement.

“Understandably, this is causing disruption and uncertainty in the banking industry as financial institutions have had to come to terms with big changes over a short period of time. And while a majority of are starting to recognise the long-term benefits of open banking, there are still concerns and challenges that must be overcome in the race to meet the regulatory deadline.”

He continued: “Encouragingly we are seeing a pioneering new generation of banking leaders rising to the open banking challenge – leapfrogging legacy tech, embracing partnerships and bypassing traditional ways of working. They see an opportunity to exemplify the true spirit of the open banking movement – transforming business models and creating the truly customer-centric services of the future.”