It’s true that our mission is to power the future of finance, and open banking is an important step along the way. But open banking itself is not the goal – it’s a means to an end. The goal is meeting customer expectations while unlocking the potential of digital financial services.

From open finance to open data economies

Tink’s research makes it clear that while open banking is still far from global market adoption, it's already moved beyond what it was a few years ago. Instead, open finance has emerged as the natural continuation of open banking. Open finance is an important stepping stone on the road towards embedded finance, open insurance, and open data economies. 

The key difference between them is that while open finance operates strictly within the financial services industry, open data economies have the potential to move across all industries: from payments and banking to technology and transportation – and much more. 

Open finance market maturity

According to our research, the market is ripe and ready to evolve and move beyond open banking. In Europe, Sweden and the UK are leading the pack, thanks to well-developed regulatory support and a tech-savvy population. 

But Europe as a continent isn’t the clear winner: countries such as the US, India, and Hong Kong are ahead of many European countries because of market demand.  

Unlocking data access across industries

As we’re moving into open finance, embedded finance is often highlighted as the ultimate application of open banking technology. A perfect example of how fintech journeys can significantly enhance customer experience. 

Convenience is key to creating superior user experiences. That’s why embedded finance is so highly anticipated. What better financial service for consumers than one that operates flawlessly in the background, completely invisible?

It’s this kind of ‘under-the-hood’ thinking that we believe will power the future of finance. But before we can move onto perfecting embedded finance and preparing for open data economies, we need to level the playing field around access to data. 

Access to financial data unlocks countless opportunities and has the potential to change the role that financial institutions play in our lives – from a provider of financial services to an enabler of all industries. And with the experience of implementing open banking, financial institutions are well-positioned to lead other markets in the journey towards open data economies.