Open banking payments will “boom” in 2022, as the shift to open finance and open data continues, according to Daniel Kjellén, chief executive and co-founder of open banking platform Tink.
Kjellén has also predicted that financial wellbeing and inclusion will gain increased attention in the year ahead, making 2022 the year of sustainable innovation.
“The pandemic has accelerated the shift to digital, and changes that we expected to take a decade more are now happening,” said Kjellén.
“As the shift to open finance and open data accelerates, it will encourage a healthy and competitive industry and vibrant financial ecosystem — enabling innovative new products and services to be created. This will give consumers and businesses more choice and control over how they manage their finances.”
Kjellén noted that World Bank data shows that almost 1.7bn people across the globe are unbanked. He expects to see a “flow of investment going to startups that enable the underbanked greater access to the financial system using a more holistic picture of their data.”
“Now that open banking tech is mature enough, the payments industry has the opportunity to fully leverage the innovation we’ve already seen,” he added.
“I expect 2022 will be the year many new products come to market to give everyone more freedom and choice in how they pay and receive payments.”
Kjellén also predicted that 2022 will be “the year of sustainable innovation” with green loans coming to the fore. Open banking will play a huge role in how sustainable investments are rolled out, he says, “such as mapping investments against ESG ratings, understanding the risk profile of customers, and accessing or providing loans to fund change throughout society.
“The need for data sits behind many of these issues, either from within an organisation itself or through a data outreach programme towards its customers.
“Open banking is key to creating more of these solutions which is likely to be a bigger focus for financial institutions next year.”