Overcoming obstacles to capitalise on a game-changing opportunity

Open Banking is not just a challenge — it is an opportunity, an invitation to innovate. Join us as we delve into the challenges and opportunities in the Open Banking landscape.

A big thanks to all who joined the poll discussing challenges in #OpenBanking faced by banks. Looking at the responses collected from my recent LinkedIn poll about “What is the biggest challenge faced by banks when implementing Open Banking solutions?”, the range of perspectives, coming from both sides of the equation—traditional banks and Third Party Providers (TPPs)—was truly thought-provoking.

Interestingly, over half of you identified the ‘lack of perceived benefit’ as the biggest challenge. This, to me, highlights a knowledge gap we must bridge. When I was Head of Open Banking delivery at a large UK bank, we never saw this as a stumbling block. For us, the question was never about the benefits but about embracing the inevitable industry evolution. Open Banking was, and still is, a route we were committed to, driven by a desire to better serve our customers and meet PSD2 compliance mandates. It was an investment in the future, not merely a compliance exercise.

The remaining concerns—cost of implementation, technical integration, and security and compliance—are genuine challenges. As a veteran of the banking sector, I can attest that Open Banking is an exercise of scaling walls built by legacy systems, expensive builds, and new security standards such as FAPI.

Having switched to the Fintech side with obconnect, we operate under FCA regulation as a PISP/AISP, and partner with a broad spectrum of TPPs and corporate entities who are seeking Open Banking solutions. This gives us a comprehensive understanding of the advantages that Open Banking delivers. While consumer-level benefits may still seem elusive to some, we, as ecosystem participants, have a responsibility to drive adoption, ease consumer concerns and effectively highlight the incredible benefits of Open Banking.

Open Banking is already making waves in sectors like accountancy platforms and government payments (HMRC being a prime example), not to mention its crucial role in providing affordable lending solutions. When I speak with stakeholders in these spaces, their enthusiasm for Open Banking’s efficiency and success is palpable.

That said, the journey doesn’t end at merely implementing Open Banking—it is about maintaining it as a seamless, efficient service. Security and compliance are paramount, whether you’re a CMA9 bank or a non-CMA9 bank complying with PSD2. And, this service needs to be future-proof, continually evolving to meet market demands.

There’s no sugar-coating the fact that developing and maintaining an Open Banking platform is an ongoing investment. It demands financial resources, yes, but also a consistent commitment of human resources. This is where obconnect comes in. We alleviate the burden, helping banks deliver Open Banking services to TPPs seamlessly and effectively.

Open Banking is not just a challenge — it is an opportunity, an invitation to innovate. If you’re considering your Open Banking options, reach out to us at obconnect. Let us guide you through this exciting journey.

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