Lack of internal alignment could hold back firms from realising their Open Banking potential
FCA reminds firms to be ready for end of transition period With the Brexit transition period due to end on 31 December, the FCA are reminding firms to be prepared for a number of changes to regulations. In a couple of short weeks, EU laws will no longer apply and the FCA has set out detailed considerations for firms to understand if/how they will be affected and any actions they may need to take. Nausicaa Delfas, Executive Director of International at the FCA, said at the start of December, “with just a month to go until the end of the transition period, firms need to make sure they are prepared for the end of passport- ing, and for the new financial services landscape after the end of the transi- tion period.” More information about the FCA’s guidance can be found here.
A new survey by Tink found that finan - cial institutions see an opportunity in Open Banking but believe that a lack of internal alignment risks holding firms back from realising this potential. Tink surveyed 290 financial executives across multiple European countries and found over two-thirds of those surveyed are aware of the opportuni- ties of Open Banking and believe that the benefits outweigh the potential costs. However, only 43% of product owners believe their team has the required resources to fully capitalise on this. UK and Ireland country manager at Tink, Rafael Plantier, said: “we should not underestimate the enormity of
the task that financial institutions face in transforming their operations to become Open Banking ready. It is to be expected that there are differ - ing levels of buy-in for open banking across the organisation, and pockets of the business that may lag behind in embracing the opportunity.” Regardless, the investment in Open Banking for the future is clear: accord - ing to the report, the average annual Open Banking spending growth rate is 20-29%. Compared to 2019, spend - ing on Open Banking has increased by 63%, with budgets distributed fairly evenly across organisations’ departments. You can read the full report here .
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