55% of lenders plan to adopt Open Banking technology by the end of 2021, with 93% of those businesses expecting to adopt the data-sharing initiative in the next 12 months; according to the recent data of Know-it. 

One-fifth of lenders are to implement Open Banking-enabled products with a higher sense of urgency as a direct impact of the Covid-19 pandemic. It is evident that consumer adoption of new technologies was accelerated by the pandemic, and many banks were forced to close branches during the first lockdown, forcing many aspects of credit lending online, such as ID verification and payment tools were accelerated online.

Recently released data from the consumer reporting specialists Equifax has highlighted significant changes in the way customers and businesses participate in the banking ecosystem are incoming.

Lynne Darcey Quigley, Founder and CEO of Know-it, commented: “A business owner’s aim is to maintain financial health. To improve return on investment (ROI) and keep customers happy, the right financial tools and innovative technology are necessary. The majority of small businesses use third-party financial management services.

Accounting, consulting, and credit management are some of the financial services available to SMBs (Small, Medium-sized Businesses). In order to run a successful SMB, it takes more than simply selling products or services to customers. It is controlling the entire credit control process to help ensure you receive payment. SMB owners are more likely to make the right decision about open banking when they understand that fact.

According to research, the total value of Open Banking payments is set to exceed £210 million this year in the UK.

“Developed fintechs are filling gaps in the UK financial ecosystem,” continues Lynne, “making the destination an excellent place to develop a digital banking brand and expand services abroad. Despite the fact that traditional banking doesn’t entirely disappear, it’s undesirable to deny the relevance of fintech. Innovations in technology allow for easy money transfers, secure online payments, and automation of business processes.

“Modernising the banking industry is an evolving process, but for now, digital is the dominant trend. Due to the growing number of challenger banks and fintechs going strong in the UK and elsewhere, competition among banks and fintechs is becoming fierce.

“It’s no longer an option for traditional banks and firms wishing to survive to remain stagnant in the wake of a tumultuous period marked by the threat of a pandemic and there exists a huge opportunity for fintech businesses who are seen as more agile, nimble and flexible to collaborate and partner with more traditional banks and financial services firms who can offer experience, access to networks, supply chains and scale.”

This article was first published by The Fintech Times.