In 2018, if you sat down with any leading financial institution in the UK and asked for their thoughts on open banking, they would immediately respond with curiosity and excitement.

They could see the technology’s potential to be a game-changing force in financial services by empowering customers, enhancing competition, and driving innovation. The UK was at the forefront of this change with regulatory frameworks encouraging data sharing and unlocking new opportunities for financial institutions.

Over the last year, I’ve had the same conversation with leading financial institutions, and the response has been entirely different despite technological advancements. They talk about the barriers to success and the struggle to create a meaningful impact from mounds of consumer data. They struggle to show the resulting return on investment behind investing in open banking data and to identify customer or commercial value.

But the conversation around open banking is already shifting again. AI is transforming open banking, turning it from a slow-moving experiment into a powerful competitive edge. The barriers that once hindered consumer adoption are fading, and the potential is greater than ever.

The opportunity is clear. Financial institutions that manage to behave like disruptors, innovate quickly, and leverage open banking data will be winners in the AI economy. However, financial institutions that hesitate then risk being left behind. They need to embark on a radical rethink of their open banking strategies if they are to become the companies that usher in the next era of finance.

Customer data is biggest asset in the AI economy

At the heart of this opportunity is customer data, which has become the most valuable asset in the fintech sector. Open banking made vast amounts of financial data available, but the challenge has always been turning that data into meaningful actions and business impact.

Despite this immense potential, many organisations still struggle to capitalise on it. The complexity of accessing, interpreting, and integrating open banking data remains a major hurdle. The data exists, but too often, it’s disconnected from real business needs.

The key to unlocking the potential of this data lies within AI. When financial institutions combine unique customer data with the power of LLMs, they can offer hyper-personalised financial products, driving deeper customer engagement. The more engaged customers are, the richer and more valuable the data becomes—creating a flywheel effect that fuels both business growth and customer satisfaction.

Creating customer trust to embrace AI opportunity

For financial institutions willing to embrace AI and rethink their approach to open banking, the rewards are clear. Those who build trust with consumers, provide them with tangible value in exchange for their data, and use AI to transform raw information into action will lead the next wave of innovation—creating a win-win ecosystem where both businesses and customers thrive.

Financial institutions that fail to adapt will get left behind in the AI economy
Institutions that fail to adopt these technologies quickly and effectively risk falling behind. When new technologies come to the forefront of finance, disruptors have always maintained a significant advantage over incumbents thanks to their speed and agility. When it comes to open banking and AI, this advantage has only widened.

The solution? Financial institutions need to rip up the open banking playbook. They need to mirror the quick and agile approach disruptors take. AI needs to be viewed by leaders as the next evolution of their business rather than a one-off transformation project. Start today, make improvements quickly and frequently, and transform through small, incremental steps that can yield significant results over time.

Move fast but don’t break things

The opportunity to reimagine open banking through AI is immense, and financial institutions that embrace this shift will be the ones to thrive. By integrating AI-driven analytics with open banking data, they can unlock deeper insights, deliver more personalised services, and drive innovation all while accelerating the growth of their business.

The future of open banking will be shaped by those who leverage AI to bridge the gap between raw financial data and real customer value. Institutions that act now won’t just stay ahead of the competition; they will redefine the financial experience, strengthening customer relationships and setting new industry standards.