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Insights and Expertise

Despite these critiques, it's important to note that the
implementation of open banking has generated some
positives. The initiative paved the way for countless
new financial products, including personal budgeting
apps, personalized lending options, and SME finance
platforms.

User adoption across certain territories has also been
really strong, with over 7 million people in the UK
alone using open banking services in 2023 and the
European open banking market projected to reach ap-
proximately €20 billion (US$21.05 billion) by 2026.

Learning the lessons
Ahead of the implementation of new initiatives, such
as the digital euro, which will once again require fin-
tech businesses and traditional financial institutions
to work together, there are clear lessons that must be
learned from what's happened with open banking.

Above all is the need for parties across the financial
ecosystem to see each other as partners, not competi-
tors in order to foster strong, transparent and produc-
tive relationships between all involved that help to im-
prove customer experiences.
Ultimately, fostering mutual respect and a deeper
understanding of each party's role is essential to es-
tablishing a harmonious relationship. By valuing the
unique contributions each institution offers, banks and
fintechs can collaborate more effectively, ensuring new
initiatives deliver genuine benefits for all stakeholders.

This inclusive approach promises to build a more re-
silient, efficient and dynamic financial landscape,
driving innovation and accessibility throughout the
region's financial ecosystem.

By building on the positives of open banking and ad-
dressing its challenges, there is strong potential for
forthcoming initiatives to achieve even greater success.

Through closer collaboration, traditional financial in-
stitutions and fintech businesses have a unique oppor-
tunity to enhance financial experiences across Europe,
creating a transformation that benefits all. In doing so,
both sectors can reaffirm their commitment to working
together to drive improved outcomes for their custom-
ers, and not only themselves.

Karthik Jagannathan is head of payments advisory at Intix. To
contact him via LinkedIn Karthik, see www.linkedin.com/in/jag-
annathankarthik. For more information about Intix, please visit:
https://intix.eu.

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