New research from Curity shows nearly half of all major institutions in the industry have already adopted Open Banking, with almost three-quarters (70%) planning to adopt within the next 18 months
LONDON , June 14, 2022 /PRNewswire/ — Nearly Half (43%) of All Large Financial Institutions Have Already Adopted Open Banking According to a new report from the API-based identity management company Curiosity.
There ‘Facilitating the future of open finance‘ surveyed 200 global financial institutions and employees who manage the Open Banking process. The report reveals that the top three motivations for adopting Open Banking are to increase competitiveness (58%), to offer new products and services (55%) and to meet customer demand (48%).
Despite these important drivers for the Open Banking initiative, the results also show some hesitation about its adoption. Reasons for hesitation include concerns about compliance and security risks (61%), a shortage of skills and knowledge (51%) and changing business priorities (45%).
Curity’s findings come amid exponential interest in Open Banking, with the global Open Banking market expected to reach $43.15 billion by 2026 according to the report published by Allied Market Research.
With growing customer acceptance, the fact that nearly three-quarters of organizations surveyed (71%) plan to adopt Open Banking within the next 18 months demonstrates the importance of continuing to develop robust technical solutions, meeting regulatory requirements and maintain corporate integrity.
The biggest security concern among financial firms is outdated systems that don’t support data sharing (62%), meaning they’re unable to comply with new data protection regulations. data that is imperative for new Open Banking products and services.
Travis Spencer, CEO of Curity, said: Our new report offers a critical level of insight into understanding Open Banking and the impact it will have on financial institutions for the foreseeable future. 70% of financial institutions surveyed plan to adopt Open Banking fairly quickly, so they need to understand the regulatory and security requirements needed to be successful.”
Almost all financial institutions (96%) believe that consumer adoption is crucial to the future of Open Banking. Organizations should communicate with customers in a simple and concise way about data privacy without relying on jargon to complicate matters, ensuring that customers feel confident in how their data is handled and managed within the framework. of the Open Banking process. According to more than half of respondents (56%), understanding the deployment of modern authentication methods is key to consumer adoption.
The future of Open Banking is clear for financial institutions of all sizes if they are ready to embrace it. Large enterprises have led the way with nearly half of respondents (43%) already adopting the technology, but there are still opportunities to encourage smaller organizations to adapt and move forward with the innovation for years to come.
Notes to Editors
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Curity spoke to 200 global financial organizations, in partnership with research consultancy Priestley, to better understand the Open Finance landscape, as well as Open Banking adoption rates.
Curity is a leading API-based identity management provider, delivering unified security for digital services. Curity Identity Server is used to connect and secure access for millions of users to web and mobile applications as well as APIs and microservices. Curity’s leadership is built on open standards and designed for development and operations. Curity is trusted by large organizations in financial services, telecommunications, retail, energy, and government departments that need enterprise-grade API access security.
For more information, please visit https://curity.io/
Contact : Joshua Scott, [email protected]07518766344