Open banking is a phenomenon that is rapidly maturing across the world.
The gradual shift towards an open data economy seems inevitable. It is possible that the future will be a marketplace that is characterized purely by platforms that take advantage of enhanced data flows in order to offer relevant, personalized services to customers and businesses.
Initially, this shift was felt most keenly in the banking sector. However, the full spectrum of financial services is now beginning to accept open banking as the status quo, and there will be a series of trends that will mark 2022.
Understanding these trends and developments is vital for maintaining proper control over the open banking industry and ensuring that a business does not fall behind.
- Trust Will Lead
The first significant prediction for 2022 is that marketplaces will be constructed around the concept of trust.
Sharing and referral fees will become a significant source of revenue for both banking and non-banking institutions. The majority of banking users are more reassured by a peer-reviewed service than they are by the hollow promises of a corporation.
It’s also the case that customers will react positively towards services that have been approved by a trusted provider. Any mishandling of customer data or bad business practices will instantly erode that trust, so building an effective, strong relationship based on faith in services will be vital.
2022 may well mark the year that the boundaries between different industries begin to blur.
Simply put, it’s entirely possible that non-banking institutions will begin delivering financial services and integrating their ecosystems through APIs.
The other end of this is that banks may also expand into non-banking services. Ultimately, the prevailing opinion is that rather than having separate providers for different services, there will be one trusted provider that customers use for everything.
This transition into singular services will force businesses and providers to adapt. It is no longer just enough to offer a specific service; there will now be a need to provide multiple services that seamlessly integrate with each other.
- Customer First Focuses
If open banking is going to succeed, then there must be a focus on putting the customer at the center of the financial process.
In the past, banking providers have acted with a degree of detachment, delivering services that they consider to be profitable for customers and corporations alike. However, this may no longer be the case.
The whole point of open banking is that it breaks down some of the barriers between different data streams and allows the customer to use the data to make crucial decisions. Corporations and providers must create an environment where this is possible because otherwise, customer retention will fall.
Ultimately, open banking should not be seen as a brand new method of delivering services but instead should focus on presenting itself as a tool that can be used to improve the customer relationship and ensure faster, more accessible ways of doing things.
- Open Banking Payments Surge
As open banking continues to develop, it’s highly likely that there will be a surge in usage.
As a concept, open banking is getting faster and more developed. Simple, easy payments are becoming the best way to pay for things, and there are benefits and every part of the process. Customers, merchants, payment providers, and operators are all benefiting from the use of open banking.
As the industry reaches maturity, many businesses and companies will begin using open payments as a method of purchasing, as it is now mature enough to have a support system in place that will allow the freedom to make purchases as customers choose to do so.
- Increased Financial Inclusion
Financial inclusion is something that is set to be another big trend in 2022. It’s estimated that 1.7 billion people all across the world don’t have a bank.
It is a major problem that open banking has the potential to try and solve. By creating cost-effective, personalized, reliable services for people, the number of people that join the financial world will grow.
It was never just a case of making services for people to join; it was about making services that were inclusive. Open banking is one of the most inclusive services available, and it does work for attracting people who don’t necessarily have any other way to bank.
- General Growth
It probably goes without saying, but open banking will continue to grow substantially over 2022.
As the industry continues to mature and grow, it’s easy to see how people will develop brand-new confidence in the world of open banking. It’s no longer justified; instead, it has a robust support system in place and is developing new processes and policies every day.
As a trend, open banking can only continue to grow. The more people that pay attention to it, the bigger it gets, and the bigger it gets, the more it continues to grow. It’s a very circular method of progress, but an effective one nonetheless.
Open banking helps to bypass many of the conventional issues surrounding modern banking. By breaking down the boundaries between different forms of data, a more personal form of banking can develop.
Open banking is one of those things that will allow people to push forward and develop a personal relationship with their finances that wasn’t previously available.
The industry is growing at an impressive clip – what started out as an idea just a few years ago is now becoming a fully-fledged industry. Recognizing the trends of online banking is vital for getting the best results possible, and it will allow businesses to make wise decisions over the year.
It will be interesting to see exactly how 2022 develops open banking and how it will move into 2023. Growth is guaranteed, but there is also a growing sense of inclusion that is hard to ignore. This is a method of doing things that is new, innovative, and friendlier for many than conventional banking has been – it’s difficult to tell how popular that will be.