Almost half (43 per cent) of all large financial institutions have now adopted open banking.
According to new research from open banking-driven identity management company Curity, the top three motivations for adopting open banking are to improve competitiveness (58 per cent), deliver new products and services (55 per cent) and to meet customer demand (48 per cent).
However, hesitation remains.
Curity found that among those financial institutions which have not yet implemented open banking, 61 per cent said they were concerned about compliance and security risks, while 51 per cent said their main concern was a skills and knowledge shortage, and 45 per cent said that they were hesitant due to changing business priorities.
Despite this, 71 per cent of financial institutions plan to adopt open banking in the next 18 months.
“Our new report offers a level of insight that is crucial in understanding open banking and the impact it will have on financial institutions in the foreseeable future,” said Travis Spencer, chief executive at Curity.
“70 per cent of financial institutions surveyed are planning to adopt open banking relatively soon so they must understand the regulatory requirements and security necessary to be successful.”