Stockholm-based Tink has released new research that shows a rise in spending by European financial executives as they are investing more in Open Banking. The investments aim to enhance customer experience and generate new revenue streams. The data revealed that median open banking investment budgets for European financial institutions are typically between €50-€100 million, with spending exceeding €100 million for 45% of financial institutions surveyed.

63% have said that open banking budgets have grown since last year, with annual spending rising by 20%-29. 10% of the institutions surveyed showed a decline in their investments in this area. Daniel Kjellén, co-founder and CEO of Tink said, “The size of these investments prove that open banking has moved firmly from compliance challenge to commercial opportunity in the minds of financial institutions. Not only has it become integral to the digital transformation of financial institutions and been embedded across all parts of the organization — but it has also emerged as a key driver of revenue growth and an important differentiator when it comes to customer engagement and experience.”

“Today, as we wrestle with the new social and economic realities of life with Covid-19, it is vital that financial institutions continue to prioritize the development of innovative open banking use cases that support their customers in new ways and provide financial services seamlessly over digital channels,” the CEO concluded.

Source Credit: IBS Intelligence