Are Incumbent Financial Institutions Finally Embracing Open Banking?

Open banking was once viewed by many incumbent financial institutions with much skepticism; however, as open bank hub initiatives continue to prove their value in giving consumers more (and increasingly better) options for using their bank data (especially in light of the COVID-19 pandemic), the benefits of open banking to these same financial institutions is starting to be seen. In particular, they are seeing how it is much easier for them to leverage their own data to provide personalized experiences to consumers. Moreover, the push for open banking could drive financial institutions to play a leading role in digital identification initiatives.

With open banking gaining steam around the world and many countries passing regulatory requirements regarding it, it seems as if the open banking era is truly here to stay.