Implementing the Open Banking strategies is turning out be a challenging exercise for European banks even though majority of the banks with assets more than $300bn have implemented the project, according to a report from Fiserv.
Majority of the respondents (57%) said they are finding it to difficult to hire people with right technological skill sets for open banking initiatives.
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Only 27% of the respondents said they had adequate manpower and skills to remain open banking compliant.
A total of 400 respondents representing retail banks of the UK, Poland, France and Australia participated in the survey.
Open Banking survey: Key findings
The survey found that while most of the major European lenders have completed the process, however Australian banks plan to implement from the first half of next year.
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By GlobalDataAll the major financial institutions in Australia are required to adopt Open Banking by July 2019.
The Open Banking survey found that banks are planning to utilise the strategic opportunities associated with open banking. Third-party integration (38%), defending against transaction fees (38%) and customer relationship maintenance (36%) are the most common strategies of the banks’ open banking programme.
Around 21% of the respondents stated that customer service improvements, while 16% referred facilitating access to new services, as main objectives of the open banking strategy.
Most of the banking representatives agreed that Open Banking will have an impact on financial activities, with 67% anticipating a moderate impact.
However, only 13% of the respondents said that they are satisfied with the Open Banking implementation. A majority of them stated that they would be outsourced the implementation works.
Fiserv EMEA product and marketing vice-president Nick White said: “As open banking initiatives are being initiated around the globe, banks are beginning to look beyond compliance toward more strategic priorities including expanding solution capabilities and improving customer service.
“With many banks stating that they lack personnel and skill sets, outsourcing of open banking technology development and maintenance may become more common as banks look to become and remain compliant as well as capitalize on the opportunities of open banking.”
