More than a third (34 per cent) of UK-based institutions expect it will take more than a decade to complete their open banking objectives, despite overwhelming support for the open banking initiative.
According to a new survey from European open banking platform Tink, 71 per cent of executives feel positive about the future of open banking, with the figure rising to 81 per cent among UK-based executives.
However, 37 per cent of Europe-wide financial executives expect their institutions to take more than a decade to complete their open banking objectives, while a further 40 per cent expect to take five to 10 years to fulfil their open banking objectives.
Among UK-based respondents, 28 per cent expect their institution to deliver on its open banking objectives in under five years.
“The vast majority of European financial institutions are eager to embrace open banking’s true potential,” said Daniel Kjellén, co-founder and chief executive of Tink.
“But we know an open banking revolution won’t happen overnight and we recognise that the pace of change may be slow as institutions grapple with complex transformation projects that could take over a decade to deliver.
“And it’s not because of a lack of appetite on the part of financial institutions – many find themselves held back by legacy infrastructure or technological challenges. This is where fintech partnerships can work to catalyse open banking strategies.
“Building open banking infrastructure is difficult – rather than embarking on in-house transformational projects which can take a decade to come to fruition, smart partnerships can shortcut timeframes and leapfrog legacy systems, allowing institutions to reap the rewards of open banking earlier than they might realise.”
Financial institutions in Belgium (87 per cent), the Netherlands (85 per cent) and the UK (81 per cent) were the most positive about the future of open banking.
Meanwhile, executives in Spain (37 per cent), Italy (34 per cent), and France (30 per cent) were most optimistic about their open banking timescales, predicting that their institutions’ objectives can be completed in under five years.