The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Treasury

Transaction services: Banking’s open question

A lack of standardization, together with patchy appreciation of its potential, means open banking continues to struggle to gain traction in many regions.

key-currency-symbols-960x535.png

While there is plenty of excitement about its potential, in reality the take-up of open banking by end users globally is still relatively slow and will require greater standardization and target market education before it delivers.

According to Allied Market Research, the open-banking market will grow by around a quarter every year between 2018 and 2026. However, there is a lot of work to be done before it becomes ubiquitous, even in the most mature markets.

The first challenge is one of standardization. While open banking is underpinned by API (application program interface) technology, the lack of an industry standard with an associated common implementation guideline is proving problematic.

Many banks are already moving from simpler use cases such as account aggregation into cash management and FX
Rune Mai, Nordic API Gateway

“At the moment, there is divergence within the industry around the actual message structure, which introduces additional complexity and cost for providers,” says Mark Sutton, open-banking specialist at treasury consultancy Zanders.

“More needs to be done by firms and regulators to raise awareness and reach scale, even in jurisdictions such as the UK where regulations are already in place.”

The


You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree