Here at Curity, we work with many large financial institutions that are delivering Open Banking initiatives. Developing secure applications that use many APIs and require a lot of third-party integrations, usually in a complex Identity Security Infrastructure, is a challenge we often encounter.
The industry needs to manage constant change, driven by customer expectations, rapidly evolving technology, and in many cases, a high requirement for regulatory compliance. These new opportunities bring fresh challenges and risks. To understand how the industry is managing this change and the level of adoption, we recently surveyed 200 financial institutions.
The report reveals that the top three motivators for adopting Open Banking are to increase competitiveness (58%), to deliver new products and services (55%), and to meet customer demand (48%).
Over half (56%) strongly agree that consumer acceptance of modern authentication methods is key to the future of Open Banking. To ensure consumer adoption, it will be vital to invest in security tools and infrastructure and ensure industry bodies are in place for regulations and support.
The largest security concern amongst financial enterprises is outdated systems that don't support data sharing (62%), meaning they are unable to comply with new data protection regulations that are imperative to new Open Banking products and services.
Our data paints a picture of the future of open finance. For further insights, you can download the full report here.