Open banking

We had a chat with Mattias Levin, Deputy Head of Unit at the EU Commission, about the pandemic boom of digital finance, the future of open banking, and using policy to aid post-pandemic economic recovery.

While we can never really know for sure what the new year will bring – it’s still quite fun to guess. (Then look back to see what you got right and where you were way off.) Here’s what Tink CEO Daniel Kjellén predicts for 2022.

Open banking is ramping up competition in the financial services space, as new market entrants start capitalising on the opportunities. How can financial incumbents make sure they remain on top of the game? Here’s what we suggest.

How has the pandemic impacted open banking budgets? How much did financial executives invest in their open banking objectives? And which opportunities do they have in sight? We surveyed bankers across Europe to find out.

Open banking brings an opportunity to improve the value propositions in payments, retail banking, wealth management, insurance, investments and other segments of finance. But how much could this opportunity be worth, exactly?

What is the SEPA Request-to-Pay scheme? What does it mean for banks, merchants and consumers – and for the future of payments in Europe? Is there anything that might be holding it back? We provide answers – and our own take on it.

Is open banking a threat to the accounting industry? We don’t see it that way. In fact, we think accounting software providers have a lot to gain by leveraging new open banking capabilities. We take a look at some of the key benefits.

To expose, or consume open banking APIs? That is the question. Discover the four paths financial institutions can take when it comes to their open banking strategy, and our view on what is currently the best route to explore.

Open banking isn’t just changing the game for financial services. Find out how different industries, from retail to telcos, can take advantage of the free flow of financial information to improve customer experiences – and business results.

Financial executives in Europe see open banking as a revolution, and are embracing it more than ever. But many expect it will take several years to get there. While transformation takes time – there could be a way to accelerate it.

The UK’s open banking journey has been a bit different compared to other countries in Europe, and this has given them an edge – leading to a more mature environment. Here’s our take on what has contributed to their success.

Banking priorities have changed as a result of the pandemic. Discover the three focus areas that are top of mind for financial executives – and how open banking can help institutions tackle all three by leveraging financial data.

Connecting to an open banking API seems pretty straightforward. But making the connection is just the first step in a complex process. Here are some aspects businesses often overlook when deciding to build the connections in-house.

Tink’s new survey report finds that a majority of financial executives in the UK foresee a permanent impact from the pandemic – unlike their European peers. We take a closer look at the UK stats, and how they compare to the EU-wide results.

Income verification used to mean having to dig up bank statements, share income tax statements or payslips – and then wait days or even weeks to have it all verified. Now, thanks to open banking it can take seconds. Here’s how.

We interviewed Guido Crozzoli CIO of Poste Italiane to see how they are using open banking APIs and PSD2 to improve their service offerings to create an improved customer experience.

Tink’s Research Director Jan van Vonno dives into the findings from our 2021 report, sharing economic statistics and survey results to shed light on emerging risks, changing priorities, and the role of open banking in the years ahead.

What is considered a payment account under PSD2 and what isn’t? Seems like a simple question, right? But, as with most topics in the finance industry, the answer is almost always ‘well, it depends…

In our new report ‘open banking in a post-pandemic world’ 41% of Europe’s financial executives believe the digital shift caused by Covid is permanent – with over two thirds saying the pandemic has increased their focus on open banking.

Find out how the lending industry can benefit from open banking, and how they can leverage new tech capabilities to improve the user experience, reduce costs, increase operational efficiency and optimise results.

Many of the acronyms used in open banking were introduced in connection with PSD2, and they can be a little confusing. This means it’s important to explain them, otherwise, people might have a hard time following you.

Variable Recurring Payments is a hot topic in open banking, and many believe it could change the face of consumer payments as we know them. Here’s an overview of how it works – and why it’s such a powerful contender in the payments space.

SCA stands for Strong Customer Authentication, and it’s a regulatory requirement introduced in connection to PSD2. Here’s a basic summary of what a ‘strong’ authentication process can look like – and why it’s important.

Open banking is becoming a crucial tool in the fight to reduce carbon footprint. By plugging open banking tech into digital services, individuals and businesses can track and change their behaviour in a meaningful way. Here’s how.

How can banks transform the digital banking experience and build long, lasting (and more profitable) relationships with customers? We lay out how banks can leverage open banking to create more valuable, personalised services.

The latest EBA Opinion calls for the removal of obstacles that obstruct TPP’s access to accounts for open banking services. Here’s our take on the most important bits of the Opinion, and what it means for banks and TPPs alike.

We interviewed Matteo Concas, Head of Global Digital Banking Solutions at Enel X. Here’s why one of the largest energy companies in Europe is looking to financial services – and open banking – to bring more value to their customers.

When charging or paying out customers, businesses rely on them to provide their account details. But people can make mistakes – or try to commit fraud. Thankfully, account verification can save everyone a lot of grief.

Gone are the days when banks and fintechs battled for the financial services crown, as collaboration proves king. Tink’s Rafa Plantier takes a look at how banks and fintechs have worked out they’re better together.

With new possibilities brought on by open banking, banks need to overcome internal challenges to beat the race to deliver the best possible customer experience. Here are three key steps to taking advantage of this opportunity.

Watch this recorded session of our latest webinar, where Tink’s Research Director Jan van Vonno will look at the different forces impacting open banking progress and shine a spotlight on where the internal alignment may reflect why some financial institutions are able to move faster than others.

Our Research Director takes a look at the different forces impacting open banking progress and explores how organisations’ internal alignment may explain why some financial institutions are able to move faster than others.

A whopping 70% of C-level executives see the opportunities of open banking, while just 45% of product owners agree. Tink’s latest research report dives into the task banks face aligning their organisations to make the most of open banking.

When it comes to the top open banking opportunities, not all countries see eye-to-eye. Here are the open banking use cases being prioritised in five different markets – and the differences between them.

Not sure what open banking APIs are, and getting tired of hearing about them all the time? We’re looking past the technicalities and explaining the term in plain English.

Multi-banking makes it easier for people to see the full picture of all their finances by gathering all their accounts in one view. Here’s why that can make a big difference for consumers and businesses.

We’re always on about how great open banking is, and how it’s ramping up innovation and competition in the financial services industry. But what is it, exactly? And why does it matter? Here’s a (very simple) rundown.

To stay ahead of the curve and master the open banking transformation, bankers need to start looking beyond compliance, and be smart about where to invest.

Not sure what payment initiation is, what it looks like, or why you should care? We’re breaking it down into simple terms. Here’s how it works, and what advantages it brings to consumers and businesses alike.

We interviewed Michael Anseeuw, Head of Retail Banking and long-time open banking evangelist at BNP Paribas Fortis. Here’s what he had to share about the challenges of being an early adopter, and his vision for a customer-centric approach.

Watch our webinar, where Tink’s Research Director runs through our 2020 survey results, taking a closer look at the use cases financial institutions are investing in and the immediate opportunities they have in sight.

Our newly released survey report takes a closer look at open banking use cases, and which opportunities financial executives across Europe are most anticipating. Get to know more about the top five picks.

From an expanding ecosystem, to improvements in APIs, and increased investment – open banking has come a long way since the PSD2 deadline in 2019. Here’s how we see the progress that’s been made, and where work still needs to be done.

Data is great, but it can often be made better. That’s what data enrichment is all about. Here’s what data enrichment can do for financial data in very simple terms. And why it can make all the difference.

Rafael Plantier, Tink’s UK & Ireland Country Manager looks at how open banking technology can open the digital doors to financial services for many more people, while helping businesses operate more efficiently.

Find out how you can leverage access to financial data to solve different challenges throughout your customer journey – from the first steps in the onboarding all the way through to a successful sale.

We get down to the basics of account aggregation. Find out more about what it means, and how it can be used to increase transparency for both consumers and businesses.

Tink’s series of local open banking reports lift the lid on the biggest open banking spenders in Europe, looking at who is expecting speedy returns on their investments, where innovation has boomed and whose spend has increased the most.

PFM is great. But what is it exactly? We get down to the basics and explain the term, what it means, and what it has to offer for consumers and businesses alike.

The barriers of operating across borders are coming down. Open banking is allowing any company, big or small, to take the same model and apply it to any country - slashing time-to-market, and creating vast opportunities for everyone.

The EBA has resolved some of the biggest questions in relation to PSD2 APIs, after documenting its opinion on the practices of banks and the obstacles caused. This is Tink’s summary of the most significant implications.

The financial services industry is on the verge of a monumental shift towards data-driven solutions. By going beyond compliance businesses can unlock new market opportunities and improve customer experiences at lower costs.

Open banking has taken the financial services industry by storm, with executives taking advantage of a new industry paradigm. But how is open banking investment shaping up across the continent? Here’s a spoiler - it’s massive, and growing.

Watch the recording of our webinar to find out more about the results from our 2020 survey. Research Director Jan van Vonno explores how much financial institutions are investing in open banking, and how they’re looking to profit from it.

We ventured once again into the minds of European bankers and found that financial institutions are making significant investments towards their open banking initiatives. But what’s driving them? Or what’s standing in the way?

It’s time for the industry to catch up with the first movers of open banking, but the end goal is not to meet regulation. It’s about increasing sales and productivity, and reducing risk - to get a return on your open banking investment.

Our new Regional Director for DACH has his sights set on making the financial actors in the region the stars of the open banking show - by helping them create the slick digital experiences people are beginning to expect.

The first report based on our survey of 290 senior executives and decision makers in the financial industry across Europe is out. Find out what the results reveal about how bankers are tackling the open banking opportunity.

Watch our webinar to learn more about how businesses are looking to create value from open banking – and how you can do the same. Tink’s Research Director presents the results from our 2020 survey of financial executives.

Open banking is changing the way people interact with their finances, as more providers launch value added services that have a real impact on people’s lives. But to get people to adopt new services – especially when they require sharing personal data – you need a solid foundation of trust. Here’s why trust matters, and the four pillars that are needed to keep it in place.

Find out how you can engage more customers, build trust, boost sales and increase share of wallet by providing actionable insights in your PFM experience.

Bank and fintech partnerships are booming as the shift in the financial industry is taking everyone in the same direction. But just like with any other relationship, a happily ever after is not always a given. We’ve previously shared tips from our own experience in building successful partnerships, but we were curious to get the bankers’ perspective. So we reached out to our partners at CGD for their take on it.

Instead of focusing on the September deadline, the real test will be how you innovate to meet consumer demands in an era of increasingly personalised experiences.

Data is becoming increasingly central to innovation, but it can be challenging to know how to leverage it successfully. What strategies can help you gain an edge? We heard out a data guru’s 3 tips on using data to create value – while putting the customer first.

Leda Glyptis is a leading voice in banking from both the startup and the incumbent side. Way back at Money2020 in Amsterdam, we sat down with her to talk about this opportunity that is open banking and the big opportunities that it presents.

At the beginning of 2019, we set our sights on making the most of the opportunity that open banking is offering – a huge industry shift that is bringing about a new generation of financial services to market. Before we wrap up another year, we’re looking back at our own journey in 2019 and how it reflects this industry-wide transformation.

With the September PDS2 deadline now visible in our rearview mirror, what is the status of the bank APIs in Europe two months later? Well, we still face big challenges as an industry to make sure the technical environments improve. But what we’ve seen is an encouraging shift in terms of collaboration and cooperation with some of Europe’s biggest banks. 

Financial data has until recently been an untapped powerhouse of insight into a customer’s mind and heart. But now this data is in the hands of consumers instead of being locked away in their banks’ vaults – opening up space for innovation and enabling a range of new ideas that can make a big impact in people’s lives.

Since before PSD2 became law, we have been working at a European level to advocate for the changes that are now becoming core to the open banking movement. And it’s because we see a future in which the banking and financial services industry takes a major leap into the future. Here’s the role we’ve played – and why it matters.

After reaching a commercial agreement, the bank and fintech are feeling pretty comfortable together. A commitment has been made and everyone’s clear about where the relationship is headed. The next step – making the collaboration fruitful – is not always straightforward. Here are five tips we’ve refined for when it’s time to get a product to market.

Our blossoming bank and fintech relationship has reached the ‘let’s make it official’ phase. But even though we both want to end up in the same place, charting a path there can be complicated. First, we have to make sure we can get past our fundamental differences to see a happy future together – preferably in the form of a commercial agreement.

Forming a bank and fintech partnership is a lot like dating. You meet, hit it off and decide you want to be together. But first you have to manage the challenges of bridging two totally different worlds. This is the full story of how we figured out that banks and fintechs can see the future in the same way (cue: heart emoji).

The financial industry has been standing at the precipice of this major shift. Some banks have taken the leap – innovative thinkers and leaders embracing the data revolution and using it to deliver amazing services. For those who’ve waited, now is your time – to take a leap, redefine how consumers manage their money and seize a once-in-a-lifetime opportunity to change banking for the better.

The results from Tink’s new UK survey report show that British bankers have a split opinion on the open banking movement, and unlike most other bankers across Europe, dealing with the new regulations is not a major concern for them. For respondents in the UK, ‘other incumbent banks’ came up as the single biggest threat brought by the open access to data.

Tink’s new report finds that financial executives in Germany are more likely to perceive the open banking movement as a threat rather than an opportunity, and indicates that they are not looking to explore new opportunities beyond the scope of PSD2 regulations for now. But they still understand the industry is in transformation (just like the German market), and are looking to partner with fintechs to tackle the journey ahead.

From the demise of cash and physical bank branches, to the rise of digital banks and automation, technology is irreversibly changing the way we manage our money – and what we expect from the services that do. 

Tink speaks to independent blogger and author Chris Skinner, about his positive view on the future of banking and what banks need to do - to change their business model and truly digitalise.

Europe has so far been largely protected from the big tech march into financial services. Penetrating each market has been a challenge due to differences in language, tech adoption and regulations. But open banking is unifying the financial landscape across the continent, making it easier for tech giants to get a foot in. Now the big questions are: what will happen when they do? And what do we need to do to safeguard customer loyalty?

In our final analysis of PDS2 APIs, we’ve found that none are compliant with the PSD2 requirements and obligations – the same result we reported from our last evaluation in June. And with less than a month before the final deadline, it is the millions of banking customers across Europe who will suffer the consequences.

It has felt in recent months as if the entire industry is mobilised to meet next month’s final PSD2 deadline. But forgotten in all the talk of SCA requirements, fallbacks and EBA clarifications is the monumental human effort that is being made deep in the offices of third parties and banks to create and align on an entirely new way of working.

Ultimately, everyone involved in this march to September – banks and third parties alike – is in the business of meeting the needs of customers. And yet, they could be forgotten if the majority of banks’ PSD2 APIs continue to offer just one authentication flow – the dreaded web redirect. It’s a method that kills innovation, destroys the customer experience, and could threaten the success of this open banking movement in which we’ve all invested so heavily.

In our recent open banking report – Inside the minds of Europe’s bankers – we quizzed nearly 270 financial executives across Europe, and sat down with some of the leading minds in the field to get to the bottom of the biggest challenges, threats and opportunities of open banking.

We raised the alarm bells earlier this month that the banks’ production APIs are far from ready – a reality that could threaten the services that millions of consumers enjoy. If they remain poor, then the success of PSD2 could hinge on a safety net that’s built into the regulation. But with no clarity around what this safety net should look like or how it will be applied, there is a real risk it won’t provide the security it was intended to.

We’ve seen our fair share of banking partners succeed in their efforts to build digital services that customers love, partner with fintechs to get the right tech, and becoming data-driven organisations. Taking all of those lessons, we’ve distilled them down into the three things you can do as a banker that will best equip you for the journey ahead.

A Tink analysis finds that none of the tested bank APIs released by the penultimate 14th June deadline meet the quality requirements laid out by PSD2 regulators – potentially creating a “cliff edge” scenario in September that compromises the financial services for millions of consumers.

The open banking movement is picking up steam – and we’re seeing an uptick in companies launching “open banking platforms”. But without defining what this really means, it’s impossible to make a like-for-like comparison. So we’re stripping away the term – and giving you a checklist with the criteria that really matters when evaluating a tech partner.

Over three days in early June, the best and brightest decision makers in the industry met at Money20/20 to discuss the biggest transformation in decades. We had substantive conversations about the future of open banking in the pink booth – and took the stage to share our vision.

This is the final piece in a three-part series: Inside the minds of Europe’s bankers. We conducted an open banking survey, querying nearly 270 European financial executives on how they see the movement, the regulations and the future. This is the last of the three major conclusions we’ve made after analysing the data.

Today is the deadline for all banks to have their production APIs ready, and the first day for all third parties to officially start integrating with them. But having spent the last three months rigorously testing more than 100 bank APIs in their sandbox environments, we can conclude this: the APIs available up to now are far from ready, lacking the quality and maturity they need – offering a sobering preview of the condition of the production APIs due out today.

This is the second piece in a three-part series: Inside the minds of Europe’s bankers. We conducted an open banking survey, querying nearly 270 European financial executives on how they see the movement, the regulations and the future. This is the second of the three major conclusions we’ve made after analysing the data.

This is the first piece in a three-part series: Inside the minds of Europe’s bankers. We conducted a survey on the subject of open banking, querying nearly 270 European financial executives on how they see the movement, the regulations and the future. This is the first of the three major conclusions we’ve made after analysing the data.

This is the second piece in our ongoing series called Tink Thinks: Inside the EBA, where we explain and comment on the business of the European Banking Authority’s (EBA) PSD2 API Working group, which is helping to ease the implementation process ahead of the September deadline.

By Tomas Prochazka and Ralf Ohlhausen

Meet Tink’s new senior adviser and investor: Christian Clausen. He’s a veteran of the old guard of banking – a former CEO of Nordea and chairman of the European Banking Federation. He’s sharing his expertise and unique insight gained from years working with Europe’s biggest banks. And we’ve joined forces to help bankers seize the immense opportunity up for grabs as the industry shifts – and open the digital doors to their customers.

As other industries fuel a change in customer expectations, the banking biz has some catching up to do. And the only way to win in this new era of customer engagement – where their data is up for grabs – is to focus, relentlessly, on the people behind the accounts.

The open banking movement is forcing the industry to innovate on an unprecedented scale. The smart banks are meeting this challenge by rethinking their singular focus on products – and behaving more like software companies to attract and hold onto their customers.

Now that banks can start to look beyond the huge task of being regulation ready, everyone’s attention is turning to what’s next. Which is how to get the most out of the open banking opportunity. But if banks want to stay ahead of the emerging competition, the time to act is now.

One of the two biggest PSD2 deadlines just whizzed by on 14 March without much fanfare – and more importantly – without the compliance of 41% of the European banks we surveyed in 10 markets. Many will point fingers at those who failed to comply. But what it really highlights is that despite deep pockets and plenty of resources, the demands that PSD2 places on banks are monumental.

This is the first piece in our ongoing series called Tink Thinks, where we explain and comment on the business of the European Banking Authority’s (EBA) PSD2 API working group, which is helping to ease the implementation process ahead of the September deadline.

Automated financial services bringing about the demise of banks is being talked about as if it’s a done deal.

Winning the customer of the future will require a level of personalisation and insight that doesn’t currently exist in banking. But it’s coming – and we’re building the platform that will deliver it. Our PFM solutions use machine learning to offer tailored, actionable advice that guides customers to the financial future they envision – and creates long-term relationships.

We recently wrote about the high abandonment rates that banks are battling during the onboarding process – and how to kill the friction so that more users complete the process. But improving onboarding doesn’t necessarily mean your user retention will be high. We’re sharing the top three factors that will help you attract users – and keep them coming back.

Australia is known for many things, including its natural wonders, and (potentially daunting) wildlife. In the fintech world, it will also soon be known for its own version of open banking. One that is inspired by Europe, but with an Aussie twist.

When it comes to open banking, behavioural finance expert Galina Andreeva is a staunch supporter. But she cautions that the opportunities it presents come with their own risks – and to offer the best service, banks need to understand their customers better than ever before.

Customers can be demanding folks. The speed and seamlessness of technology today has conditioned us all to expect the same experience in every interaction – whether we’re booking a hotel, buying paper towels on Amazon or filling in a banking application. The first two instances have adapted well to the shifting expectations – the latter, not so much.

Leda Glyptis can empathise with the banks. She’s a recovering banker herself. At a time when the incumbents are choosing to embrace this era of open banking – albeit slowly – the chief of staff at challenger consultancy 11:FS lays out the three choices they can make in order to make money and move their business forward.

We sat down with payments and PSD2 expert from the Bank of Ireland, Julie Connor, to discuss the opportunities of open banking and the strengths of standardisation.

The financial services industry in Europe is at a crossroad. Regulators have decided to open the floodgates to competition by introducing the concept of open banking. Although Europe is progressive when it comes to regulations, implementation can be complex. Now the world is watching to see how new regulations affect the financial industry in Europe.

Much like Tink, the trustee for the UK’s Open Banking Implementation Entity (OBIE) has big visions for the future of data-driven banking. He says it’s only a matter of time until the full scope of customer data is available for fintechs to use to build innovative new products.

Hugo Bongers, head of ABN AMRO's Digital Impact Fund, says he is excited by the plethora of new companies working on big ideas. But in a chat with us at the Money20/20 conference in June, he said that ultimately people want one central place or platform where all services will be combined.

From blue-chip banks to fintech unicorns, our customers are using Tink services to better respond to this era of open banking – in which the power is shifting from banks to consumers, and giving consumers the power to choose.

Open banking was designed to open the retail banking market by giving everyone access to the data they needed to deliver banking services. Initially viewed as a massive boon for fintechs, and a worrying threat for banks, the mindset of the latter is shifting.

Every financial transaction generates data, which means that every business in the financial services sector has a hugely valuable resource right under their nose. Until recently, very few businesses and banks were actually able to make use of this data. Even those who held the right expertise were often held back by the cumbersome legacy systems which remain prevalent in the banking sector. Now, things are changing.

We’re big fans of open APIs – they bring much-needed transparency to the banking industry and are a catalyst for better services. And while PSD2 will usher in an era of open APIs, it does so in a whisper – offering only payment data and thus an incomplete picture of a customer’s full financial life. The future is open APIs that make all data available – and create a foundation for anyone to build services that result in better financial choices for us all.

Tink conversed, connected and listened at this year’s Amsterdam conference. And here’s what we learned about the major leaps the banking industry is taking in this era of open banking.

With the introduction of PSD2 (the second Payment Services Directive), we are now entering a new era of open banking. At the customer’s request, EU member states will be forced to open up their customer data and payments infrastructure to third-party providers.

Until now, banks have occupied a privileged space. They have operated in a market that has handed them a monopoly over their customers’ data and discouraged competition and innovation. This is about to change as we are entering the era of open banking.

Instead of resisting, banks should embrace the opportunity to embrace the spirit of PSD2. First mover advantage is huge.

Anyone who thinks that a mobile banking app is simply a place where people interact with their own bank should think again. Banking is becoming a concierge service, providing consumers with an overview of all their finances, regardless of who they ‘bank’ with in the traditional sense.