Finastra survey shows most US financial institutions consider Open Banking essential, with a new focus on shared data and infrastructure
LAKE MARY, Fla., Dec. 6, 2022 /CNW/ -- Finastra research reveals that views on Open Banking in the United States have matured over the last year, with 68% of respondents considering it either a 'must have' or 'important', up from 48% last year. Of those who have integrated Open Banking, 100% now say there has been a significant impact to their organization.
The 'Financial Services: State of the Nation Survey 2022' finds that as more financial institutions understand the business value of Open Banking and the broader context of open finance, many are now moving into a second phase – focusing on shared data and infrastructure. With 56% of US respondents (up from 45%) saying that open finance is now a 'must have', this suggests that the sector is actively reviewing products and services that would benefit from an ecosystem model.
Although the financial services industry is currently seeing increased constraints and hesitation around investing in technology, the data shows that 82% of US respondents believe that shared data and infrastructure will become a key part of the strategy for the move to Open Banking and finance, emphasizing the steady appetite financial institutions still have in this area.
The research was conducted amongst 758 professionals at financial institutions and banks from August to September 2022 across France, Germany, Hong Kong, Singapore, the UAE, the UK and the US. It explores the Open Banking and finance landscape, the technology and initiatives set to make an impact in financial services over the next year, and the growing importance of ESG.
Other insights include:
"Finastra has always championed open finance as the key to unlocking the potential of people, businesses and communities everywhere," said Simon Paris, Chief Executive Officer at Finastra. "Over the years that we have conducted this survey, we have seen open finance grow from an emerging idea to a clear priority for institutions across the world, enabling, as it does, business model shifts such as embedded banking, as well as financial inclusion and equality." Access the full report and findings here.
Finastra is a global provider of financial software applications and marketplaces, and launched the leading open platform for innovation, FusionFabric.cloud, in 2017. It serves institutions of all sizes, providing award-winning solutions and services across Lending, Payments, Treasury & Capital Markets and Universal Banking (Retail, Digital and Commercial Banking) for banks to support direct banking relationships and grow through indirect channels, such as embedded finance and Banking as a Service. Its pioneering approach and commitment to open finance and collaboration is why it is trusted by ~8,600 institutions, including 90 of the world's top 100 banks. For more information, visit finastra.com.
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