Survey explores Open Banking benefits for UK businesses

Thursday 1 February 2024 13:54 CET | News

Payit by NatWest has conducted a survey involving 150 business leaders from UK organisations with an annual revenue of GBP 2 million or more.


The findings indicate that 66% of larger UK businesses are well-acquainted with Open Banking, reporting an average annual saving of 150 hours previously allocated to operational tasks such as invoice processing, managing financial data, recurring payments, and handling refunds. 

In essence, the survey reveals how Open Banking is effectively addressing payment processing costs, reducing the time spent on financial tasks, and potentially enhancing customer experience. Business leaders incorporating Open Banking into their payment systems disclosed a monthly average of 44.5 hours spent on finance tasks, in contrast to the slightly over 57 hours by those not relying on Open Banking. Over the course of a year, this translates to more than 150 hours, equivalent to over four working weeks. 

The reduction in time spent on tasks correlates with financial benefits according to the survey's findings. Businesses without Open Banking tend to spend GBP 1,687 more on payment processes annually and GBP 1,117 more on card processing fees compared to those leveraging this technology, representing an 8% annual difference in expenditure. 

In its sixth year, Open Banking has gained considerable recognition, with 97% of UK firms indicating some level of awareness.


Payit by NatWest has conducted a survey involving 150 business leaders from UK organizations with an annual revenue of GBP 2 million or more.


More information about Open Banking

Open Banking, through secure data sharing with third-party apps and services, provides access to new payment tools, automated financial management, and real-time updates, contributing to a reduction in operational time spent on related tasks. 

Financial experts emphasise the widespread benefits of Open Banking adoption for businesses, including access to real-time data for better-informed decision-making and tools to manage payment tasks efficiently. The survey revealed that businesses incorporating Open Banking in their payment processes encounter fewer issues with common finance tasks. Only 26% of Open Banking users consider late payments a top issue, in contrast to 42% of non-users reporting this challenge. 

Respondents expressed that real-time data from Open Banking could aid in developing customer experience (39%), improving payment efficiencies, and reducing operational costs (37%). Despite these advantages, the survey identified barriers hindering adoption, with 48% expressing concerns about cybersecurity risks. Notably, Open Banking adheres to Finance Grade API specifications, akin to bank-level security, and is regulated by the FCA or a National Competent Authority. 

Representatives from PayIt by NatWest highlighted the positive trend of UK businesses embracing Open Banking and enjoying operational and cost efficiencies.

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Keywords: Open Banking, survey, financial services, payment processing
Categories: Banking & Fintech
Companies: Payit
Countries: United Kingdom
This article is part of category

Banking & Fintech


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