The global financial services sector is increasingly recognizing the critical importance of open finance, with nearly half of senior professionals deeming it essential for effective data sharing. A recent survey conducted by Finastra, which engaged over 750 financial service professionals from seven different countries, revealed that 48% view open finance as a “must-have,” reflecting a notable increase from 38% in 2021. An impressive 94% acknowledged it as either essential or important.
The growing enthusiasm for open finance is evident, with 85% of respondents agreeing that it fosters greater collaboration within the industry and yields positive outcomes. Meanwhile, open banking, which has reached a more mature stage, is regarded as “must-have” or “important” by an overwhelming 99% of survey participants.
Additionally, the survey highlighted that 83% of financial institutions recognize that Banking as a Service (BaaS) and embedded finance offerings are now standard expectations among customers. More than a third of the respondents reported enhancements to BaaS capabilities in the past year, while a slightly smaller proportion has implemented embedded finance solutions.
The key drivers for technology adoption remain unchanged: expanding business opportunities, meeting customer expectations, outpacing competitors, and reducing operational costs. While there has been considerable discourse around environmental, social, and governance (ESG) factors, nearly 90% of organizations concur that it is vital for the financial services and banking sectors to actively support ESG initiatives.
Simon Paris, CEO of Finastra, remarked, “Throughout the years we have conducted this survey, we’ve observed the evolution of open finance from a nascent concept to a prominent priority for institutions worldwide. It facilitates transformative business models, such as embedded banking, and promotes financial inclusion and equality.”