Fintech firms embracing Open Banking

A report from professional services and Big Four firm EY has shown that fintech businesses in the UK are embracing Open Banking, with 59% seeing the initiative as an opportunity to reconsider their collaborations. 

The study, which surveyed more than 30 UK fintech businesses, found that more than 80% of businesses are getting ready for Open Banking, whilst 29% said that they are fully prepared for the initiative.

Advantage

Introduced in January, Open Banking enables banks to share customer data with third parties. Several businesses are already planning to take advantage of the scheme, including peer-to-peer lending companies Zopa and Lending Works.

The study showed that businesses have started to prepare for the scheme by increasing the amount of staff they have working on Open Banking-related propositions, with 30% of businesses with 50 to 250 employees saying that they had teams of ten working on the changes.

Respondents also discussed how they plan to use Open Banking to improve their business, with more than 90% of respondents focusing on boosting their products and services and 81% using the initiative to develop new services.

Opportunities

Commenting on the report, EY Open Banking and Payments Leader Hamish Thomas said: “It’s great that fintechs are embracing Open Banking and recognising the world of opportunities it will open up.”

He added: “Such a significant initiative naturally means that many fintechs are re-looking at their strategies and analysing which types of companies could be potential partners in the future.”