09/27/2024

Bank-FinTech Collaboration Key to Accelerating Open Banking Adoption

PYMNTS

Demand for seamless, real-time financial information is driving a shift in banking.

This shift, driven by technological advancements and global trends including open banking and embedded finance, has set a higher standard for financial services. As open banking and embedded finance become more ingrained in the financial ecosystem, baseline consumer expectations for speed, ease and transparency push financial institutions to adapt or risk being left behind.

However, the ability to meet these demands is often hindered by banks’ legacy systems, which can make innovation a slow and complex process.

“Banks typically have a lot of experience, trust and knowledge, but they lack flexibility and agility,” Moa Agrell, senior banking relations manager at Trustly, told PYMNTS, adding that this makes it harder for them to adapt to the changing landscape of payments and financial services.

“Consumers want their information, and that includes their financial information, to be easy to access, easy to use and to be instant while, of course, still remaining safe,” Agrell said.