Open Banking, Italy believes in it: fintech breakthrough in less than 5 years

Open Banking, Italy believes in it: fintech breakthrough in less than 5 years
Open Banking, Italy believes in it: fintech breakthrough in less than 5 years

Open banking, a revolution started in Europe. But times won’t be that fast, according to European financial institutions: more than 10 years to implement the breakthrough according to 37% of executives. But Italy goes against the trend, according to the Tink report: according to the financial managers of our country it will take less than 5 years. An “optimism”, the report reads, due to “the more limited scope of the strategies of open banking in this market (as well as in Spain and France), where the focus is more on short-term use cases based on compliance than on large-scale open banking transformation projects ”. The study also shows that in Italy the propensity towards open banking grows from 57% in 2019 to 71% in 2021, “because – we read again – executives exploit its commercial potential and recognize its strategic importance”.

Open banking “slow” revolution

Despite the growing propensity towards open banking, in Europe, its full implementation will take financial institutions many years to complete.

In 12 European countries 40% of financial executives say their organization will take 5 to 10 years to realize their open banking goals, and a further 37% believe it could take more than a decade. These cautious timelines reflect the scale of the work involved and highlight how many organizations are embarking on complex large-scale open banking transformation projects that will take several years to complete.

Who are the most innovative players

By examining the various sectors, challenger banks and asset management companies they are the most optimistic when it comes to timing, given that 75% and 74% respectively believe that their institutions’ open banking goals can be achieved in less than a decade. At the more cautious end of the ladder, only 55% of mortgage providers, 56% of credit providers and 57% of payment service providers to believe that they can reach open banking maturity within a decade.

The Italian scenario

In Italy, 23% of financial executives predict that it will take more than a decade to complete their open banking goals. Another 43% believe it will take 5-10 years, and 34% think it will take less than 5 years.

Italy is one of the most optimistic countries in Europe on the timing of open banking. This reflects a more limited scope of open banking strategies in this market (as well as in Spain and France), where the focus is more on compliance-based short-term use cases than on open banking transformation projects on large scale.

While the legacy infrastructure and technological challenges could slow the pace of transformation generated by open banking, the survey shows how Italian financial institutions are willing to embrace its benefits as soon as possible. More than three in four Italian financial executives (77%) believe that open banking is having a revolutionary effect on the financial services sector, and positive sentiment towards open banking continues to grow in Italy – from 57% in 2019 to 71% in 2021.

European countries are leading the way

Financial institutions in Belgium (87%), the Netherlands (85%) and the UK (81%) are the most inclined to open banking. And that’s not surprising, as what all three markets have in common is a competitive and innovative financial services ecosystem with a collaborative relationship between Tpps and historical financial institutions.

Financial institutions across Italy, however, are beginning to understand the benefits of open banking – recognizing how they can be achieved immediate commercial opportunities by improving the customer experience (according to 36% of respondents), launching new digital services (for 35%) and increasing revenue (for 34%).

Key role of fintech partnerships

“Looking at the survey results, we can only be happy to find that the vast majority of European financial institutions are eager to embrace the true potential of open banking – he says. Marie Johansson, Tink Country Manager in Italy – but we know that a revolution will not happen overnight, also because in markets like Italy it is still important to understand how the use cases of open banking are not limited to compliance but can really transform the sector on large scale. Nonetheless, many have already understood this and are grappling with complex transformation projects that could take more than a decade to bring about a concrete result ”.

“Such long times are not attributable to financial institutions as to the legacy infrastructures or the technological challenges that hold them back and this is where the partnership fintech can come into play – explains the manager -. Creating an open banking infrastructure is not easy: more than embarking on in-house transformation projects that may require a sunk investment, Institutions can shorten time and break away from dependency on legacy systems by relying on fintech partnerships, being able to reap the benefits of open banking sooner than they can believe “.


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