48% of experts say open finance will be a standardised market model by 2030
Technological and digital innovation, together with regulatory innovation and the inclusion of new players in the financial ecosystem, have driven the implementation of open finance (Open Banking or Open Finance).
In the view of 48% of industry experts, Open Finance will be a market standard by 2030, while for 20% it already is. Thus, open finance stands out for allowing greater openness of competition, for the variety of channels or ubiquity and for its ability to exploit cross-industry synergies thanks to embedded finance.
According to the Minsait Payments Open Finance Report, the different rates of adaptation to this new model are mainly due to a lack of appetite in the market (according to 26% of those consulted) or to disparities in regulatory frameworks depending on the region.
Proof of this is that the report has identified that in 17% of the cases, there are regulatory agendas that already include the implementation of Open Finance in the short term; although in 13% of the cases, there is still no express regulatory framework that enables it.
In this regard, one out of four experts points out that data protection and privacy are the main regulatory challenge when it comes to implementing open finance. In this context, the EU is accompanying the financial sector in the creation of a new framework to ensure secure and open access to customer data, without losing sight of consumer interests, security and trust. However, this lack of clear rules of the game is leading to new Open Banking solutions evolving to Open Finance at a slower pace, as the efficiency and security of user data access interfaces is limited.
According to European consumers, who are particularly reluctant to share their financial data, the material benefits and rewards of sharing should be made more precise. In the case of Spain, more than 54% of users show greater interest in sharing their data if by doing so they obtain reductions or even the elimination of commissions and management fees. In addition, the report finds that the entity that arouses most confidence when it comes to sharing this data is the traditional bank.
PSD3, strengthening consumer and business control tools
The new PSD3 regulatory framework will establish rights and obligations in the exchange of customer data to strengthen the control tools available to consumers and businesses. Examples include: the possibility for customers to share their information with users, the obligation for holders of customer data to make it available to users, full customer control over access to content, and standardisation of customer data and the necessary interfaces.
The Minsait Payments Open Finance Sector Report is part of the company's annual study on Trends in Means of Payment, which is prepared in collaboration with Analistas Financieros Internacionales (AFI). This document gathers the opinions of more than 4,800 bank users in Spain, Italy, Portugal, the United Kingdom and Latin America (Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Peru and the Dominican Republic).