Curity report shows almost half of large financial institutions adopted Open Banking

The ‘Facilitating the Future of Open Finance’ report surveyed 200 global financial institutions and employees who are managing the Open Banking process. The report reveals that the top three motivators for adopting Open Banking are to increase competitiveness (58%), to deliver new products and services (55%), and to meet customer demand (48%).

Despite these significant drivers for the Open Banking initiative, the results also show some hesitation regarding its adoption. Reasons for hesitation include compliance and security risk concerns (61%), a skills and knowledge shortage (51%), and changing business priorities (45%).

The largest security concern amongst financial enterprises is outdated systems that don’t support data sharing (62%), meaning they are unable to comply with new data protection regulations that are imperative to new Open Banking products and services.

Nearly all financial institutions (96%) believe consumer adoption is crucial to the future of Open Banking. Organisations must communicate with customers in simple and concise ways about data privacy without relying on jargon to overcomplicate matters, ensuring customers feel confident in the way their data is handled and managed within the Open Banking process. Understanding the deployment of modern authentication methods is key to consumer adoption, according to over half of those surveyed (56%).

With the exponential interest in Open Banking, the global Open Banking market is expected to reach USD 43.15 billion by 2026 according to the report published by Allied Market Research.