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AI Set to Transform Open Banking Landscape, as 74% of Banks Recognise the Potential of Collaboration

As much as 75 per cent of banks are not operationally ready to participate in and implement open banking; according to the latest ‘Digital Banking Experience’  (DBX) report released by Sopra Steria and Sopra Banking Software.

In the third annual report, produced in partnership with global market research firms Forrester and Ipsos, Sopra Steria and Sopra Banking Software reveal how AI, as well as new and emerging regulations surrounding open banking, are impacting how banks approach the space.

As AI provides banks with the tools they need to participate in open banking, 52 per cent of banks globally, and 60 per cent of US banks specifically, also see it as offering them a ‘highly-critical’ revenue stream.

Last year, the 2023 DBX Report revealed that banks’ delayed digital transformation was holding them back from competing against digital challengers and other new market entrants. Now, 58 per cent of banks believe they sit at the top level of digital maturity, after scaling their digital transformation efforts throughout the past year – the highest proportion seen in any of the annual reports.

However, shifting from legacy infrastructure alone may not be enough to keep up with the industry’s current pace of innovation.

Although a majority of banks don’t feel ready for open banking, they clearly recognise its benefits. In the US, 53 per cent of banks see improved data insights, as well as approved data sharing, through open banking services as a significant stream of revenue.

Enhanced data-sharing capabilities created by new open banking regulations could also make it easier for traditional banks to collaborate with fintechs – something that 74 per cent of global banks and 66 per cent of US banks see as ‘crucial’ to their futures. As a result of this data-driven collaboration, banks will better enable fintechs to leverage AI for innovation and the creation of new consumer financial products and services.

Growing consumer trust with better services
Eric Bierry, CEO of Sopra Banking Software, AI open banking
Eric Bierry, CEO of Sopra Banking Software

Eric Bierry, CEO of Sopra Banking Software, explained: “The urgency for digitisation in the banking industry has been deafening for years. With AI now at the helm, that call is even stronger than ever.

“Open banking is one of the main areas where banks are looking to AI to streamline processes and create new opportunities for collaboration – but it doesn’t stop there. AI also enables banks to adhere to consumers’ growing need for personalisation by becoming their trusted financial advisors.”

Traditional banks are still backed by the majority of consumers who trust them, but it’s not all sunshine and rose. In fact, 51 per cent of consumers feel that banks are not interested in helping them earn more money; 10 per cent more than last year.

Another 48 per cent feel that their current financial advisor does not understand their needs – highlighting an opportunity for banks to build on existing consumer trust by becoming better financial advisors. Sixty-two per cent of US banks believe that AI will have a significant impact on financial planning.

Is AI the key to a new frontier of banking?

The survey of over 850 senior decision makers at global banks, as well as a joint survey with Ipsos of over 11,000 global bank customers, also found that while consumers want convenient, hyper-personalised advice from banks to help them manage their finances, 40 per cent say they haven’t received it.

In fact, only 27 per cent of consumers believe that their bank offers them services suited to their personal financial situations, and 19 per cent say that the level of personalisation a bank provides can cause them to change banks altogether.

Overall, 62 per cent of US banks believe that AI will have the most significant impact on customer service. As banks increasingly turn to AI to better engage with consumers, 64 per cent plan to expand their investments in AI-enabled chatbots and digital assistants – compared to 45 per cent of banks globally.

AI can also help banks support loyalty programmes that 76 per cent of bank customers would like to benefit from, and power automated spending alerts that 62 per cent of customers would like to receive to help manage their budgets.


  • Tom joined The Fintech Times in 2022 as part of the operations team; later joining the editorial team as a journalist.

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