UK fintech sector eager to embrace Open Banking
22 March 2018 | 12782 views | 4
UK fintech firms are working hard to make the most of the Open Banking era, according to a survey from EY which shows that the vast majority are actively getting ready to take advantage of the slew of customer data that is being opened up to them.
EY quizzed 31 UK fintechs that have raised about £500 million between them for the survey, finding that 94% see Open Banking as a major area of opportunity.
With this in mind, 81% are getting ready and 29% say that they are already fully prepared, with almost a third of survey participants claiming to have teams of 10-plus working on Open Banking projects.
Resourcing talent is only the fourth biggest challenge cited by respondents, behind customer adoption, identifying which propositions to invest in, and actually developing the products. More than three quarters are building new propositions, with 23% prioritising account and/or data aggregation.
Meanwhile, 59% of participants see Open Banking as an opportunity to review their collaboration strategies - something that could see them looking outside the financial services sector, with three-quarters believing that new competitors such as tech firms will become increasingly important over time.
Hamish Thomas, Open Banking and payments leader, EY, says: "Such a significant initiative naturally means that many FinTechs are re-looking at their strategies and analysing which types of companies could be potential partners in the future.
"However, whether it’ll be other emerging FinTechs, more established banks, technology companies, or a combination of these, it will be fascinating to see what new products and/or services are launched over the coming months and years, which will transform our daily financial lives."