Temenos survey: 80% of bankers positive about open banking (PSD2)
Temenos, a leading banking software vendor and FinTech champion, published the results of its latest survey.
These show that bankers seem remarkably upbeat about the changing banking landscape. Close to 80% stated that open banking, which has been facilitated by PSD2 in Europe since 13 January 2018, is more an opportunity than a threat. Importantly, almost two thirds of the respondents stated that they are ready to invest in an API platform and that they would be prepared to distribute third-party products through their platform. The latter is in line with changed attitudes towards fintech companies, which are now viewed as partners by the vast majority of banks, rather than competitors. This being said, the survey only reflects the opinion of bankers that attended the Temenos Community Forum in Lisbon, which is not necessarily a statistically representative cross-section of the banking population 😉
The survey however also contained a necessary dose of realism to cool the enthusiasm of Fintech start-ups, acknowledging that it is difficult to get young FinTech companies through the bank’s internal procurement process. While banks are often quick to accept (and pay, if customised) for demo versions of the FinTech products, navigating legal, compliance, IT and other departments to get to final contract sign-off can take up to 18 months, before deployment work can get started. Hence, the importance for start-ups to have a good working knowledge of the legal and regulatory requirements that they must need to fulfil as part of the vendor acceptance process at banking partners. The challenge is not getting your foot in the door, but signing up banks for long-term partnerships.