The connections and data made available by open banking are opening up space for a new wave of value creation.
Research from Accenture estimates the global open banking market could be worth (hundreds of) billions for institutions that succeed in creating value for their customers and partners.
We surveyed financial executives in Europe to understand how open banking investments are shaping up in 2021.
Open banking is helping accelerate the digital transformation in the financial industry, and the connections – and data – now available in the market are opening up space for a new wave of value creation.
Accenture Research finds that the global open banking market could be worth billions for the financial service providers that succeed in creating value for their customers and partners – estimating that a whopping $416 billion in revenue might be at stake.
This number, however, does not capture the total amount of spending on open banking objectives – which may include investments (resulting in improvements) across IT, product, and third-party services.
In other words, we believe the open banking total addressable market may be even bigger.
Early in 2020 we conducted a survey to find out how open banking investments were shaping up across Europe – and the results suggested financial executives were backing these initiatives up with a lot of money. Not only were the investments massive, at a median of €50 million-€100 million, but open banking budgets were also reported to be growing, indicating that the industry was on the verge of a monumental shift towards data-driven services.
Of course, a lot of things didn’t quite go according to plan in 2020, and financial institutions – as well as their budgets – had to adapt to an abrupt change in circumstances.
To understand the pandemic’s impact on open banking, we surveyed financial executives again in 2021. While we’ve found that the shift to digital has led banks to change priorities and focus on the creation of digital services (resulting in an increased focus on open banking), we also wanted to understand how their investments were impacted.
With an addressable market with this much potential, we can’t help but wonder if executives recognise the potential (massive) ROI that could be lying in wait.
Our latest report – exploring open banking investments and use cases in 2021 – follows the money and sheds light on not only how much financial executives in Europe are investing, but which use cases they are most eager to pursue. Read on to find out what we uncovered.
Find out more about the state of open banking investments and the use cases being prioritised by financial executives across Europe.
Open banking tools like Tink Money Manager and Tink Data Enrichment help its partners, like Savings Banks Group, offer streamlined user experiences that coach consumers towards financial wellness.
Following the European Commission's PSD3, PSR, and FIDA proposals, here we examine some key considerations surrounding the potential transition of account information services (AIS) from PSD3 to FIDA.
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Contact our team to learn more about what we can help you build – or create an account to get started right away.