How Financial Institutions are Thinking about Open Banking: Survey Results

December 17, 2024 Financial institutions are prioritizing regulatory preparedness for the new U.S. open banking regulation, with 61% of bank executives rating it as a high priority and 60% considering compliance their top concern. However, readiness varies significantly among institutions, with larger banks feeling more prepared than smaller ones. Executives see open banking as a strategic lever for innovation, customer engagement, and competitive differentiation, with over half viewing it as a business advantage. To navigate this landscape, financial institutions are partnering with trusted providers like Plaid to enhance regulatory readiness and deliver secure, innovative financial solutions. Regional and smaller banks face unique challenges in adopting open banking, but investing in technology and tools can help them remain competitive and prioritize investments in fraud prevention, security, and digital transformation. Ultimately, open banking represents a transformative shift in the financial services industry, requiring institutions to align regulatory compliance with strategic innovation to meet consumer expectations and achieve sustainable growth.