Yolt Technology Services launches European Open Banking Outlook
By Joy Dumasia
Yolt Technology Services (YTS), one of Europe’s leading open banking providers, has launched its inaugural European Open Banking Outlook (EOBO), revealing huge growth potential for open banking, with 40% of banking customers across Europe’s biggest markets not currently using any open banking solution.
The EOBO, produced in partnership with the Centre for Economics and Business Research (CEBR) and experts from around Europe, tracks the progress of open banking across the continent’s six largest markets: Spain, the UK, Germany, France, Italy, and the Netherlands.
Over half of all respondents in the UK (50.95%) and Germany (50.2%) are not using financial products or services facilitated by open banking. Spain has the smallest percentage of banking customer respondents not using open banking at all (23.5%) and attains the highest score for the Engagement pillar (86 out of 100), which may be due to the efforts made by some of the country’s largest banks to create and promote comprehensive open banking proposition.
The UK has the highest overall score compared to other markets in Europe due to its supportive regulatory environment that stimulates innovation in banks and third-party providers (TPPs) when it comes to Openness. The study reveals that only in the UK have policymakers and regulators extended the legal and regulatory foundation for open banking and created a framework based on cooperation.
Nicolas Weng Kan, Chief Executive Officer at Yolt Technology Services, said: “Our findings reveal the need and growing appetite for open banking, but the variation in levels of understanding and adoption show that much more work needs to be done to help customers enjoy the full benefits of open banking-facilitated products and services. Recent months have showed the power and impact of digitalised services, and in the wider financial services sector, these have largely emerged due to consumer demand. Our Impact pillar shows that the demand is also there for open banking, and it’s now up to the financial services industry to meet that demand.”