THE MAJORITY of UK banks expect customers to see the benefits of Open Banking within the next six months.
A survey of 400 senior banking executives at banks in the UK, Poland, France and Australia, commissioned by financial software provider Fiserv, found that 79 per cent of UK respondents expect to see benefits from the new data-sharing initiative in that time frame, although this is a smaller proportion than their Polish (88 per cent) and French (91 per cent) counterparts.
Only 19 per cent of executives in Australia – which is only just introducing Open Banking – felt the benefits would come so soon.
The survey found that there is a lack of skills to help implement Open Banking, with 57 per cent finding it difficult to recruit engineering talent, although UK firms were more likely to have the necessary training.
Only 42 per cent of respondents said they have a strategy that goes beyond the initial compliance phase.
A quarter of respondents said Open Banking would change the way customers manage their finances, with 38 per cent highlighting the ability to integrate with third-party services or defending against transaction fees and 36 per cent stating it would help maintain customer relationship.
“As Open Banking initiatives are being initiated around the globe, banks are beginning to look beyond compliance toward more strategic priorities including expanding solution capabilities and improving customer service,” said Nick White, vice president of product and marketing at Fiserv.
“With many banks stating that they lack personnel and skill sets, outsourcing of open banking technology development and maintenance may become more common as banks look to become and remain compliant as well as capitalise on the opportunities of Open Banking.”
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Open Banking is a data-sharing initiative that mirrors the EU’s Revised Payment Services Directive. It mandates high street banks to share anonymised customer data with approved third parties, which can include peer-to-peer lenders and other alternative finance providers.