Banks eager to go digital amid open banking: report

Nearly half of all global banks want to become digital ecosystems in the wake of Open Banking, with incumbent banks set to benefit the most from the regime, according to a report.

Banking software company Temenos has released a report prepared by the Economist Intelligence Unit (EIU) based on a 2020 survey of over 300 global banking executives, which focuses on how open banking is reducing barriers to entry and breaking the traditional banking value chain.

In Australia, the open banking regime has been in operation by the four major banks since 1 July 2020. In November 2020, the regime was expanded to include mortgage data, which allowed consumers of the four major banks to share their home loan and mortgage offset data to accredited recipients under the new stage of the Consumer Data Right (CDR).

In December 2020, the Australian Competition and Consumer Commission (ACCC) amended the CDR rules to enable more business customers of banks to use it and share their data with accredited data recipients.

The EIU report, titled “Open Banking: revolution or evolution?”, said that when asked what would be the primary way in which they see their current digital business model evolving, 45 per cent of global banking executives are prepared to transform their business models to become “digital ecosystems”.

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Source: Banks eager to go digital amid open banking: report – Mortgage Business