Open banking in numbers – insights and data from 270 European bankers. „Compliance alone is a losing strategy.”

Tink’s key findings and insights from their European survey of nearly 270 financial executives. Learn what they see as the threats, opportunities and challenges this open banking movement presents – and what it means for the industry in 2019 and beyond.

In May 2019, Tink surveyed financial executives in the following 17 European countries: Austria, Belgium, Denmark, Estonia, Finland, France, Germany, Italy, Latvia, Lithuania, Netherlands, Norway, Poland, Portugal, Spain, Sweden, UK

Financial executives shared their positive attitudes about open banking, the threat posed by regulation and the focus on customer experience that will reshape financial services. More than half of the respondents (55%) are positive about the open banking movement – with 17% saying they are “very positive” and 38% saying they are “somewhat positive”. Just 15% indicate a negative attitude about open banking.

The top three open banking challenges:
. modernise IT systems – 36%*
. comply with EU regulations – 36%*
. find the right talent – 36%”

*Yes, it’s strange but all the numbers are the same.

The top three open banking opportunities:
. develop better digital services – 46%
. increase customer personalisation – 44%
. reduce costs of customer acquisition – 38%

Main findings

. About 2 in 5 respondents regard regulations – such as PSD2 – as the biggest threat to their business model. Technology companies are also a concern. Just over a third say fintechs and the same proportion say big tech are threats.

. 56% believe consumer loyalty towards banks will be significantly reduced. From a consumer perspective, the service they get has become far more important than the financial institution that delivers it.

. 91% are relatively confident they can comply with PSD2 regulations. Only one fifth (18%) are very confident.
Despite the confidence conveyed in Tink survey results, there is evidence that meeting the requirements of PSD2 will be a significant challenge – with a cascade of deadlines coming in the next few months.

. 41% believe regulations encourage innovation

. 74% of financial institutions are in a fintech partnership or are looking for one in the next 12 months

. compliance alone is a losing strategy. 61% believe financial institutions that only do the minimum required by PSD2 will lose out to more innovative competitors.
While accessing talent is a driving force behind most bank and fintech partnerships, it’s the access to open banking technology – and the almost-immediate ability to deliver a relevant and personal customer experience – that makes partnering so attractive. We call this “the leap”.

For more details download here the Tink report:Inside the minds of Europe’s bankers