Incentivising Open Banking
Changing consumer behaviour isn’t easy
Shifting consumer behaviour requires a strong incentive.
In payments, this can start as a monetary incentive, but a better user experience and a strong network of acceptance are needed to embed any change.
Open Banking has had a big push.
There have been new market entrants, M&A from large payment firms (e.g. Visa buying Tink), and significant investment from venture capital.
Not too long ago, businesses with annualised revenue of less than $5m were achieving unicorn valuations. It was all about the future growth potential in Open Banking.
Yet, in Western economies, cards still rule over other payment methods, and the growth in Open Banking hasn’t materialised as expected. And with so much investment in this space, Open Banking is very competitive, leading to price pressure.
Or is the tide turning? Recently, an announcement was made, and shared widely that:
there are now 10 million consumers and small businesses regularly benefiting from using open banking tec…