The evolution from online banking to open banking
Bundesbank study highlights trends and opportunities
The Deutsche Bundesbank has published its latest study on payment behaviour in Germany (you can find the study in German here). It offers exciting insights into the developments and trends surrounding online banking and digital payment methods. It also provides some interesting conclusions for open banking …
1. Online banking is on the rise and paves the way for open banking
Open Banking relies on the availability and use of online banking to allow third-party providers secure access to bank data. According to the study, 81% of respondents who use the internet say they conduct banking transactions via online banking. This widespread use and the continued rise of online banking shows that consumers are ready to use digital banking services. This facilitates the introduction and strengthens the acceptance of open banking solutions.
2. Use of web and app-based payment methods is increasing
According to the study, 51% of all payments are made in cash. However, the proportion of cash payments has decreased by 7% and debit cards and mobile payment methods have increased significantly. Payments via open banking are also becoming more popular, as internal finAPI figures show. The number of transactions and the payment volume in euros processed via finAPI are rising continuously.
The reasons for the increasing use are obvious.
3. Trust in Fintechs is increasing
Different payment data is processed electronically for every cashless payment. 90% of respondents state that their own bank is most trusted to handle this payment data responsibly. Trust in start-ups/FinTechs and technology groups is lower, but continues to increase (+4% and +5% respectively).
This growing trust in fintechs means that consumers are more open to using open banking services. They see the benefits of these new technologies for themselves and are willing to try them out. This is increasingly leading to wider adoption and use of Open Banking and the development of more innovative solutions and products by fintechs. Here are some recent use cases.
4. Data security and data protection are mandatory
The main reason why many do not yet use mobile payment methods is the “lack of demand”. At the moment, these people do not see any added value in the existing applications. But with the development of new applications, this will change in the future – that’s something we can be pretty sure of.
The second most common response is security concerns. Accordingly, data protection and data security are a key aspect for trust in open banking applications. We at finAPI therefore place the highest priority on this. Therefore, we get our data protection and data security for account information and payment initiation services independently certified by TÜV in order to build and strengthen trust in Open Banking among (potential) users.
Our conclusion
The potential of open banking is particularly evident in the increasing spread of web- and app-based payment methods. With open banking solutions, fintechs are developing new applications that are tailored precisely to the needs of users and at the same time guarantee high standards of data protection and data security.
Would you like to find out more?
Contact us for further information. We will be happy to advise you.
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