We surveyed 308 financial executives in Europe to get a better understanding of how their open banking budgets are shaping up in 2021, and what use cases they are most likely to invest in.
We’ve been surveying financial executives across Europe yearly to get the pulse on open banking and understand how it’s impacting the industry. In this report, we explore how investments are shaping up and what use cases executives have in sight. Here is the ‘too long; didn’t read’ version, if you’re just curious to know some of the top findings on the investments front:
- Across all segments of finance, the mean spending on open banking objectives in 2020 was €32 million.
- The spending was significantly higher for retail banks and wealth management firms – at a mean of €84 million and €79 million, respectively.
- The pandemic played havoc with budgets in 2020, and executives spent less than they’d initially budgeted. But this year, investor confidence is back up and open banking is high on the agenda.
- Although one third (30%) of executives say budgets declined in 2021, the largest chunk (46%) indicate that their budgets have grown year-on-year.
As to where the money might be going, financial executives have set their eyes on a broad set of open banking use cases:
- Payment initiation services comes out on top as the most important use case across all segments.
- Opportunities to improve the customer experience follow, with use cases related to financial management and onboarding.
- Risk-related use cases also rank high – especially for retail banks, credit institutions and mortgage providers who consider these ‘extremely important’.
- Differentiators and add-ons (such as subscription management, loyalty programmes, targeted advertising) rank lower on the list – although they are still important for a majority of respondents.
We also explore how open banking is tearing down barriers and allowing new players to enter the market – meaning financial institutions.