Yapily Insights: Uncovering Open Banking’s Potential for Proptech’s Growth

As the industry of property technology (proptech) continues to evolve and gain traction for its innovation, the 2nd Annual London PropTech Show played host to a crucial Yapily survey exploring the integration of open banking into proptech. As the number of renting households continues to surge—doubling in the last two decades and predominantly impacting younger generations—the survey’s findings reveal a nascent yet underexploited awareness and application of open banking within the sector.

Yapily took to the floor to ask the important questions to better understand the needs and challenges of the proptech industry, from the people themselves. This expanded analysis of the survey results, enriched by Yapily’s expertise, presents a detailed roadmap for leveraging open banking to make significant improvements to the rental experience.

Let’s explore some of the insights gathered and their broader implications.

Open Banking Awareness: On the Brink of Exploration

With less than 60% of survey participants acknowledging familiarity with open banking, the industry appears to be on the cusp of significant discovery. This points to an urgent need for broader educational initiatives and industry engagement to uncover the full spectrum of benefits that open banking offers.

Recognising the value of open banking: opportunity awaits

The survey revealed that less than 40% were aware of the potential benefits open banking could bring to their operations. This notable gap in understanding highlights an expansive opportunity for proptech to delve into how open banking can propel innovation, particularly in crafting rental solutions for younger demographics. With a greater understanding of open banking, renters would be aware of improved income verification, more secure and faster payments, as well as greater confidence with sharing their sensitive financial information.

Operational Priorities and Open Banking: A Detailed Perspective

The survey delved deeper into how proptech companies prioritise the application of open banking:

• Data Quality: Nearly 37% of respondents prioritised improving data quality, indicating a focus on securing accurate, dependable information.
• Legacy Systems: Over 26.32% highlighted the challenge of overcoming outdated systems, underscoring the need for modern, adaptable technology solutions.
• Business Expansion: 21% identified scaling operations as a key goal, reflecting ambitions to grow and penetrate new markets effectively.

However, despite these priorities, a significant 63% admitted unawareness of how open banking could aid in these areas, revealing a vast landscape of untapped potential!

The Current State of Operational Automation

A critical insight from the survey was the reliance on manual input from users, with 43% of companies still depending on manual processes for data collection and payments. In contrast, the remainder had already implemented API integration, positioning them ideally to leverage open banking API data access. This contrast not only highlights the industry’s varied approach to automation but also underscores the readiness of a substantial segment of the proptech sector to adopt open banking solutions fully.

Navigating Proptech’s Complex Landscape

Participants shared a wide range of challenges, from data quality concerns and the limitations of legacy systems to regulatory complexities and the hurdles of business expansion. These insights paint a vivid picture of the intricate challenges facing proptech, as well as the transformative potential of open banking in navigating these obstacles.

The Future of Proptech Powered by Open Banking

As the rental market grows, the call for innovative, efficient, and inclusive solutions becomes increasingly pronounced. The insights from Yapily’s survey at the 2nd Annual London PropTech Show not only shed light on the present state of open banking within proptech but also herald a future where open banking and proptech collaborate to forge a more empowered and efficient rental market.

The proptech industry stands at a pivotal juncture, with the findings serving as a compelling call to action for stakeholders to explore the intersection of technology and finance. By harnessing the capabilities of open banking, the sector can address the evolving needs of the next generation of renters, paving the way for a rental market revolution characterised by technological innovation and financial inclusivity.

Let’s get your proptech business started with open banking today so you can unlock these benefits. Speak to one of our open banking experts about how we can help you.