Open banking hasn’t delivered what it promised. There, we said it. Yes, open banking is being used, and yes, there are advantages. But has it fully delivered on the potential to optimise how consumers move, manage and make the most of their money? We’re saying no. Not yet.
For banks, open banking and open finance both have the potential to build loyalty and profits, but customers are confused as to what open banking really is. To truly be customer-centric it’s time to stop talking ‘open banking’ and show them it’s simply ‘smart banking’.
Change the Record
Demonstrating the opportunity for open banking, the survey revealed that 57% said they would be more likely to use it if their bank had more successfully implemented and promoted it.
What do people think about open banking today? And where are the opportunities for banks and others to create value? To get better insight into how people view and use open banking today, we asked 2,000 global banking customers.
Our study revealed that a significant misunderstanding of open banking is hampering its adoption. More than half (52%) of consumers have never heard of open banking and 61% have never used it, in spite of 80% using one or more mobile finance apps.
The Big Disconnect
Open banking has witnessed an increase in adoption globally as a result of the COVID-19 pandemic, and the research indicates a marked change in attitude and priorities as a result of the crisis. According to our survey, 52% said they wanted more control over their finances. At the same time, 40% said the pandemic had changed their attitudes to privacy and 24% to data sharing. Another boost came from the 41% who said they have had more time for research.
Open banking allows for innovation and customisation in scenarios that institutions cannot possibly predict yet. More opportunities to differentiate. This is the time to personalise services, it is becoming the new norm - smart banking.
As an API-driven SaaS platform, Mambu is uniquely positioned to support your open banking ambitions. If you can dream it, we can help you build it.Contact us