Important changes are coming to the way businesses and customers engage in the banking ecosystem, according to credit management experts Know-it.

55 per cent of lenders plan to adopt open banking this year with 93 per cent of those businesses expect to adopt the data-sharing initiative in the next 12 months according to recent studies.

One-fifth of lenders (19 per cent) plan to implement open banking-enabled products more quickly due to Covid-19. 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.

Research issued in the past week from consumer reporting specialists Equifax has discovered significant changes in the way customers and businesses participate in the banking ecosystem are incoming.

Lynne Darcey Quigley, Founder & 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 fintech’s are filling gaps in the UK financial ecosystem, 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”.

Lynne concluded: “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 fintech’s going strong in the UK and elsewhere, competition among banks and fintech’s is becoming fierce. It is 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 Always Finance.