Fiserv Open Banking Survey Shows Emergence of Strategic Focus
Financial institutions are thinking beyond compliance but report difficulty recruiting talent, and many that have already implemented say they would have executed differently
To date, banks have primarily focused on compliance, with only 42
percent of respondents (and just 24 percent in
Banks are united in the belief that open banking will have an impact on financial activities, with 67 percent expecting at least a moderate impact, and 27 percent of those saying open banking will completely change how customers manage their finances and interact with their banks. Across geographies, financial institutions report difficulty recruiting engineering talent for open banking projects, and many say they lack enough personnel and the necessary skill sets to stay or become complaint. The majority of banks that are already compliant say they would have executed differently knowing what they know now.
A summary of results of the multi-country survey, which included
interviews with 400 senior decision makers at retail banks in the
Looking beyond compliance, banks eye service and strategy
The majority of respondents from banks in
When looking at respondents’ views on what their open banking strategy encompasses, there are indications that banks are eyeing the strategic opportunities associated with open banking. Integrating with third-party services (38 percent), defending against transaction fees (38 percent) and maintaining customer relationships (36 percent) were the most common components of respondents’ open banking strategies. Smaller, but still notable, percentages of banks view open banking as an opportunity to improve customer service (21 percent) or facilitate access to new services for customers (16 percent).
Tech skills a global open banking speed-bump
Implementing open banking strategies may prove challenging as 57 percent of respondents said they are finding it somewhat or very difficult to recruit engineering talent for open banking initiatives.
Among banks that have already implemented open banking, only 27 percent
said they had enough people and the necessary skills to remain
compliant. Only 8 percent of respondents yet to implement open banking
agreed they have enough people and the right skill sets to become
Value in outsourcing
Only 13 percent of those that have already implemented open banking said they are happy with their implementation and would do nothing differently. Many others said they would have relied more on outsourcing, with 46 percent saying they would outsource third-party provider (TPP) life-cycle management, and 23 percent saying they would outsource the complete open banking operation. On the flip side, 11 percent said they would have built and maintained everything in house.
“As open banking initiatives are being initiated around the globe, banks
are beginning to look beyond compliance toward more strategic priorities
including expanding solution capabilities and improving customer
In a world moving faster than ever before,
About the Survey
Sr. Manager, Public Relations
Director, Public Relations