Fiserv Open Banking Survey Shows Emergence of Strategic Focus
November 27 2018 - 3:00AM
Business Wire
Financial institutions are thinking beyond
compliance but report difficulty recruiting talent, and many that
have already implemented say they would have executed
differently
Fiserv, Inc. (NASDAQ: FISV), a leading global provider of
financial services technology solutions, today announced the
results of a survey revealing insights into the implementation of
open banking initiatives by banks in the U.K., Poland, France and
Australia.
To date, banks have primarily focused on compliance, with only
42 percent of respondents (and just 24 percent in Australia) saying
their strategy for open banking goes beyond day one. However, some
banks are beginning to leverage open banking for strategic
initiatives such as improving customer service.
Banks are united in the belief that open banking will have an
impact on financial activities, with 67 percent expecting at least
a moderate impact, and 27 percent of those saying open banking will
completely change how customers manage their finances and interact
with their banks. Across geographies, financial institutions report
difficulty recruiting engineering talent for open banking projects,
and many say they lack enough personnel and the necessary skill
sets to stay or become complaint. The majority of banks that are
already compliant say they would have executed differently knowing
what they know now.
A summary of results of the multi-country survey, which included
interviews with 400 senior decision makers at retail banks in the
U.K., Poland, France and Australia, can be downloaded at
https://fisv.co/openbanking2018.
Looking beyond compliance, banks eye service and
strategy
The majority of respondents from banks in Europe with $300
billion or more in assets reported that they had already
implemented open banking projects. In Australia, where the largest
banks are required to adopt open banking by July 2019, banks plan
to implement beginning in the first half of the year.
When looking at respondents’ views on what their open banking
strategy encompasses, there are indications that banks are eyeing
the strategic opportunities associated with open banking.
Integrating with third-party services (38 percent), defending
against transaction fees (38 percent) and maintaining customer
relationships (36 percent) were the most common components of
respondents’ open banking strategies. Smaller, but still notable,
percentages of banks view open banking as an opportunity to improve
customer service (21 percent) or facilitate access to new services
for customers (16 percent).
Tech skills a global open banking speed-bump
Implementing open banking strategies may prove challenging as 57
percent of respondents said they are finding it somewhat or very
difficult to recruit engineering talent for open banking
initiatives.
Among banks that have already implemented open banking, only 27
percent said they had enough people and the necessary skills to
remain compliant. Only 8 percent of respondents yet to implement
open banking agreed they have enough people and the right skill
sets to become compliant. In Australia, no respondents said they
have enough people and the necessary skill sets, and 44 percent
said they have neither enough people nor the skill sets.
Value in outsourcing
Only 13 percent of those that have already implemented open
banking said they are happy with their implementation and would do
nothing differently. Many others said they would have relied more
on outsourcing, with 46 percent saying they would outsource
third-party provider (TPP) life-cycle management, and 23 percent
saying they would outsource the complete open banking operation. On
the flip side, 11 percent said they would have built and maintained
everything in house.
“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,” said Nick White, vice president,
product and marketing, EMEA, Fiserv. “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.”
In a world moving faster than ever before, Fiserv helps clients
deliver solutions in step with the way people live and work today –
financial services at the speed of life. Learn more at
fiserv.com.
About the Survey
LM Research & Marketing Consultancy conducted the online
survey on behalf of Fiserv between August 21 and September 1, 2018.
A total of 400 respondents in the U.K., Poland, France and
Australia participated, with 100 respondents from each country.
Respondents represent retail banks of asset values from less than
$250 million to more than $300 billion.
Additional Resources
Open Banking Survey Summary – fisv.co/openbanking2018FinKitTM
for Open Banking from Fiserv – fiserv.com/OpenBanking
About Fiserv
Fiserv, Inc. (NASDAQ: FISV) enables clients worldwide to create
and deliver financial services experiences in step with the way
people live and work today. For nearly 35 years, Fiserv has been a
trusted leader in financial services technology, helping clients
achieve best-in-class results by driving quality and innovation in
payments, processing services, risk and compliance, customer and
channel management, and insights and optimization. Fiserv is a
member of the FORTUNE® 500 and has been named among the FORTUNE
Magazine World's Most Admired Companies® for five consecutive
years, recognized for strength of business model and innovation
leadership. Visit fiserv.com and follow on social media for more
information and the latest company news.
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Media Relations:David HeatonSr. Manager, Public
RelationsFiserv, Inc.+1
770-282-0261david.heaton@fiserv.comorAdditional Contact:Ann
CaveDirector, Public RelationsFiserv, Inc.+1
678-325-9435ann.cave@fiserv.com
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