# 99% of financial firms expect to benefit from Open Banking, with improved customer onboarding the main driver of adoption
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2019-03-07
Category: BANKING
Category URL: https://financedigest.com/category/banking
Meta Title: How Open Banking is Transforming Financial Services
Meta Description: Discover how 99% of financial services organisations expect Open Banking to improve efficiency and customer experience. Download the white paper now.
URL: https://financedigest.com/99-financial-firms-expect-benefit-open-banking-improved-customer-onboarding-main-driver-adoptionhtml

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A near-unanimous 99% of financial services organisations polled expect Open Banking to benefit their business. Over half (52%) believe that Open Banking will speed up their application or onboarding process, whilst 46% expect it to improve customer experience, according to a white paper from information solutions provider TransUnion (formerly Callcredit), one of the UK’s leading credit reference agencies.

Research conducted by Forrester Consulting [\[i\]](#_edn1) on behalf of TransUnion showed that currently, over half of financial firms struggle in processing consumer applications. Key pain points include the costs and time associated with manual processing of data (56%) and customers taking too long to gather the relevant documents (50%) – both of which the new Open Banking model will address, whilst also improving the customer journey.

In fact, customer experience is cited as the key reason for financial firms to implement Open Banking, with 56% stating their organisations need to [improve customer](https://www.financedigest.com/how-artificial-intelligence-can-help-improvethe-customer-journey-in-insurance.html "How Artificial Intelligence can help improve the customer journey in Insurance") experience during applications. This is closely followed by both product innovation and keeping up with the competitive landscape (53%).

Will North, core credit director at TransUnion commented: “Financial [firms](https://www.financedigest.com/financial-firms-can-use-technology-combat-todays-cybercriminals.html "How financial firms can use technology to combat today’s cybercriminals") are not only facing competition from their traditional rivals but from a host of specialist lenders, with new players including tech giants and nimble fintechs. The latest entrants to the market bring agility and a sharp focus on customer service. To compete, finance providers should be utilising data-derived [insights to secure their customer](https://www.financedigest.com/insight-into-tomorrows-retail-banking-customers.html "INSIGHT INTO TOMORROW’S RETAIL BANKING CUSTOMERS") base, improve their service and capitalise on their brand strength.

“In this competitive landscape, it’s unsurprising that customer experience is recognised as a top priority, and Open Banking is a key platform for delivering a smoother and faster customer journey.”

**_Reaping the rewards_**

Overall, there are a number of specific areas where financial services decision makers see potential for improvement in their [customer relationships that will be enabled with the adoption of Open Banking](https://www.financedigest.com/the-bank-of-me-why-banks-need-to-be-totally-customer-centric.html "The bank of me – why banks need to be totally customer centric").

North continued: “As well as the anticipated improvements in customer onboarding, our research showed that [financial firms](https://www.financedigest.com/turning-a-blind-eye-wont-work-for-financial-firms-as-the-fca-tightens-its-grip.html "TURNING A BLIND EYE WON’T WORK FOR FINANCIAL FIRMS AS THE FCA TIGHTENS ITS GRIP") also expect Open Banking to deliver time and efficiency savings (49%) and improve their ability to cross-sell products (42%). Navigating these opportunities effectively is essential for firms in delivering a competitive service and to realise the business growth they’re looking for – the right support from trusted partners is where we come in to help them achieve that.”

The findings are part of TransUnion’s new white paper ‘The Evolution of Open Banking: Adoption, Benefits and Consent,’ which can be downloaded [here.](https://www.transunion.co.uk/open-banking-report)

[\[i\]](#_ednref1) A commissioned study conducted by Forrester Consulting on behalf of TransUnion in November 2018.


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