Technological and digital innovation, together with regulatory innovation and the inclusion of new players in the financial ecosystem, are increasingly pushing towards the implementation of open finance (Open Banking or Open Finance). But in Italy (and more generally in Europe) there is still a long way to go, according to the Minsait Payments Open Finance Report.
Open finance, in Italy it doesn’t take off
The report highlight two main obstacles to the adoption of Open Finance: a low rate of multi-banking and a limited adoption of financial aggregation tools, aggravated by stringent regulatory constraints on data and privacy.
In Italy, in fact, only 37% of the population has more than one bank account, a figure that places the country in last place among those analyzed. Even at a European level the situation is similar, with a percentage that does not even reach 50%. In terms of the adoption of financial aggregation tools, only 17% of European users use them, a fact well below the 37% recorded in Latin America.
The regulatory framework
As regards the regulatory scope, the main challenge for the implementation of Open Finance concerns, according to one expert in four, data protection and privacy. In this sense, the European Union is supporting the financial sector with a new regulatory framework (PSD3) for secure and open access to customer data.
The lack of rules of the clear game makes new solutions Open Banking evolve towards Open Finance at a slower pace, as the efficiency and security of user data access interfaces are limited.
“The slow pace of adaptation to this new model is mainly attributable to low market demand or divergences in regulatory frameworks between different regions. However, overcoming these barriers will be crucial to fully exploit the potential of Open Finance and ensure a more inclusive and competitive financial ecosystem,” he said. Roberto Scorzoni, Director of Finance Market at Minsait in Italy.
Future of Open Finance
Open Financewhich stands out as a competitive, multi-channel and cross-industry model, will be a market standard by 2030 according to 48% of industry experts interviewed in the report, while only 20% believe it already is.
According to the European consumers, who are particularly cautious about sharing their financial data, the material benefits and rewards of sharing should be made more precise. In the case of Italy, over 54% of users would be more willing to share their data in exchange for concrete benefits, such as the reduction or elimination of bank commissions or management costs. Furthermore, the report notes that the entity that inspires the most trust when it comes to sharing this data is the traditional bank (for 60% of respondents).
The Rcontribution Minsait Payments Open Financand it is part of the study that the company presents annually on Payment Means Trends, and which is drawn up in collaboration with Analistas Financieros Internacionales (AFI). The document gathers the opinions of more than 4,800 bank customers in Spain, Italy, Portugal, the United Kingdom and Latin America (Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Peru and the Dominican Republic).
