Open banking has seen varied adoption rates across the world. Spain stands at an interesting juncture of embracing open banking’s potential while navigating its challenges. This article delves into the current state of open banking adoption in Spain, identifies hurdles to its adoption, and looks ahead to its future outlook, offering recommendations and highlighting opportunities within this evolving landscape.
Open banking adoption in Spain
The pathway towards open banking adoption in Spain reflects a broader trend across Europe, heavily influenced by regulatory directives like PSD2, which aim to bolster consumer protection and competitive dynamics. However, the rate at which Spanish bank customers have embraced open banking has been quite conservative.
There seems to be a strong potential in Spain for businesses and consumers to adopt A2A payments as their domestic payment scheme, Bizum, has more than 25.3 million active users, with 38 affiliated banks such as Santander. This has helped instant mobile payments adoption across the country. In December 2023, it was announced Spain, Italy and Portugal would make a deal to unify the payments market by syncing Spain’s Bizum, Italy’s Bancomat, and Portugal’s SIBS.
Despite the undeniable digital transformation within the banking sector—accelerated by the pandemic and regulatory changes—the uptake in Spain remains subdued, particularly in comparison to some of its European neighbours.
Several factors contribute to this tentative adoption rate. Primarily, there is a noticeable reservation among Spanish banking customers towards altering their traditional payment practices. A significant degree of hesitation revolves around the sharing of personal banking information with Third-Party Providers (TPPs). This cautious attitude is deeply entwined with concerns over privacy and data security, even in the face of rigorous regulations intended to protect consumer information.
Furthermore, the progression of open banking in Spain has been somewhat hampered by a delayed implementation of PSD2, compounded by the lack of a unified open banking API standard. The PSD2 was approved in December 2015, but was not approved by the Spanish Council of Ministers until November 2018. Consequently, the market has become segmented, predominantly reliant on a single private aggregator, Redsys. The Redsys HUB PSD2 service uses the Berlin Standard group and ensures compliance with the PSD2. This helps provide uniformity across Spain as itprovides a standardised API that allows access across a vast number of banking groups, totalling 80 entities.
Moreover, the advantages and capabilities of open banking have not been effectively communicated, resulting in diminished engagement and a general disinterest in open banking. This gap in communication underscores the need for a more concerted effort to showcase the potential of open banking to consumers, to support the uplift of adoption.
Yapily’s Spain Open Banking Coverage
Our open banking platform went live in Spain in November 2021, and we now support 53 banks and financial institutions across the country, reaching 95% of Spanish bank accounts.
Explore the list of available institutions via Yapily’s open banking platform.
Future adoption of open banking in Spain
The future of open banking in Spain, despite facing current obstacles, holds substantial potential. This optimism is anchored in the evolving regulations, technological progress, and changing consumer attitudes. Forrester’s research from 2022 revealed that 60% of Spanish consumers are interested in open banking, though challenges such as connectivity issues and the absence of a standardised official API persist.
It is imperative for financial institutions and Third-Party Providers (TPPs) to focus on proving the advantages, security features, and convenience offered by open banking services. By fostering trust through clear and transparent communication and by showcasing the real-world benefits of open banking, the financial sector can narrow the divide between consumer wariness and acceptance.
As digital payment methods become more ingrained in consumer habits, open banking is poised to offer an even smoother, more secure, and efficient means of conducting transactions. This evolution reflects a significant stride towards a more integrated and user-centric financial ecosystem.
Our powerful API connecting across Spain
By addressing current hurdles with targeted strategies and embracing the evolving digital landscape, Spain can unlock the full potential of open banking, setting a precedent for a more interconnected, efficient, and consumer-centric banking future.
Speak to our open banking experts to explore our platform and discover how we can help your business connect to Spain.
