European financial institutions ramping investment in open banking

According to the data from Tink, median open banking investment budgets for European financial institutions are typically between EUR 50 and EUR 100 million, with spend exceeding EUR 100 million for 45% of financial institutions surveyed.

According to the official press-release, the opportunity to improve customer experience was the biggest driver for these open banking investments, followed by IT modernisation (39%) and process optimisation (34%). Therefore, financial institutions are optimistic about open banking ROI, with 50% projecting a payback period of less than four years and more than two-thirds (69%) expecting the benefits to outweigh the costs in less than five years. Just 1 % of those surveyed felt there was no payback at all.