The world of finance is witnessing a significant shift with the adoption of open banking. Our recent webinar, co-hosted with experts from Yapily and Super Payments, delved into this evolving domain, offering a wealth of insights into how merchants could increase their customer loyalty by using open banking payments.
The rising tide of open banking
Nicole Green, Yapily’s VP of Product Strategy & Policy, opened the discussion, to shine a light on the impressive growth in open banking users and the surge in transactions. This upswing underscores a broader trend towards more efficient and secure financial dealings, marking a significant shift in consumer and business perspectives on finance.
Lisa Gutu, our VP of EMEA Sales, went into depth about the multifaceted adoption of open banking, focusing on the roles of banks, merchants, and consumers. Through investment, there was a gradual improvement in API quality, a crucial element for merchant adoption to provide user experiences and conversion rates on par with traditional payment methods.
Lisa pointed out that initially, open banking use cases were limited to basic applications like money management and lending optimisation. However, in recent years, there has been a significant shift, with large companies such as Apple, Alipay, and Stripe embracing open banking, driven by increased conversions and reliability across markets like the UK, Netherlands, and Germany.
Nicole and Lisa’s insights prove that open banking is rapidly moving beyond a niche concept, evidenced by the growing adoption and interest from significant market players. Likewise, Commercial VRPs should add further incentivisation for banks to provide a seamless user experience.
Best practices for merchants adopting open banking
A crucial focus of our webinar was on how merchants can seamlessly adopt open banking. Insights from Dave Smallwood, VP of Enterprise Sales & Partnerships at Super Payments, emphasised the importance of customer education, ease of use, and incentives in encouraging open banking adoption. He detailed strategies for integrating open banking into customer journeys, underscoring the need for seamlessness, simplicity, and speed in transactions.
Looking ahead: open banking predictions for 2024
The panellists shared their visions for the future of open banking in 2024, with a consensus on the rising importance of Variable Recurring Payments (VRPs). Lisa from Yapily discussed the burgeoning adoption of Commercial VRPs in the UK, predicting a domino effect in their widespread acceptance.
The discussion painted a picture of a future where open banking moves from a niche offering to a mainstream payment method.
Hearing from our audience: further insights into open banking
The webinar also featured an engaging Q&A session, where audience members posed thoughtful questions. Topics ranged from the feasibility of international payments through open banking to building consumer trust in new payment methods. Clarifications about the scale of transactions suitable for open banking and the implications for consumer protection under different payment methods were also addressed.
These inquiries offered a glimpse into the practical challenges and considerations in implementing open banking solutions.
Watch it now
To gain a comprehensive understanding of open banking’s impact on customer retention and loyalty, and to delve deeper into the discussed topics, we invite you to watch the full webinar recording. Don’t miss out on valuable insights and actionable strategies.
Open banking presents endless possibilities for businesses to strengthen customer retention and loyalty. By embracing personalised financial solutions, seamless payment experiences, and enhanced financial management, businesses can forge long-lasting relationships with their customers.