Initially viewed with suspicion by banks, the use of Open APIs to share account data with third party providers is proving to be a positive driver of innovation. Thirty of percent of the banks surveyed by Finastra believe Open Banking is already making a tangible impact in delivering improved overall customer experience.

The research, which was conducted prior to the Coronavirus outbreak amongst financial institutions across the US, UK, Singapore, France, Germany, Hong Kong and UAE, shows a maturity of API adoption and calls for the harmonisation of regulations between geographies.

Close to half of the banks polled have a jaundiced view of the regulatory burden which is seen to be stifling innovation, while 48% believe there is ‘not enough government or industry support to foster innovation’, particularly so in Hong Kong (62%), France (50%) and Singapore (49%), compared to just 38% in the UK.

The UK's Financial Conduct Authority, which is viewed as a model for encouraging innovation, recently issued a call for input on proposals to extend open banking rules to a wider range of products, under a new 'open finance' regime.

The FCA believes that by making it easier for consumers and businesses to compare price and product features and switch product or provider, open finance could be beneficial to a wider range of services in the general insurance, cash savings and mortgage markets.

Simon Paris, CEO at Finastra says: “It’s encouraging to see Open Banking maturing on a global scale, but it’s still seen by many to be in its teenage years, with scope for creating even greater opportunities. We believe it will be the first step towards open finance which will see the next wave of innovation in financial services being created."