How Financial Institutions are Thinking about Open Banking: Survey Results

In today’s increasingly digital world, consumers demand seamless, secure, and real-time financial services - from mobile banking apps to digital wallets and investment platforms. The adoption of digital tools is no longer a convenience, but an expectation. To meet these demands, financial institutions are adapting to an evolving regulatory and technological environment. 

The recent finalization of U.S. open banking regulation is a critical milestone for consumers and industry. The new rule establishes a strong consumer financial data right, highlighting the importance of secure data connectivity while presenting financial institutions with both challenges and opportunities. 

To better understand how banks are navigating this landscape, we partnered with Research Results, a firm specializing in providing comprehensive market research and data analytics services, and Brunswick Group, a leading critical issues advisory firm. The firms conducted a survey of over 200 bank executives about their digital and compliance strategies.

Our findings reveal that for banks of all sizes, open banking is more than a compliance requirement - it is a strategic lever for innovation, customer engagement, and competitive differentiation.

Key Takeaways:

1. Regulatory Preparedness is a Priority, but Gaps Remain

New open banking regulatory requirements are among financial institutions’ top priorities.

61% of survey respondents rate open banking as a high priority for their company. Regulatory compliance is also top of mind for banks of all sizes, with 60% of executives identifying it as a top concern for their institution. Yet, readiness varies significantly among institutions. While nearly 9 out of 10 of C-suite executives reported feeling at least somewhat prepared to meet new open banking requirements, executives from the largest banks (those with over $100 billion in assets under management) reported the highest levels of preparedness. To address both regulation and business needs, bank executives report investing in new technology and tools (54%) and improving security (52%) as top priorities. Compliance is top of mind for executives, especially as it relates to open banking. Yet confidence in their institution's regulatory preparedness varies significantly among institutions of all sizes as they work to understand new requirements. 

2. Open Banking: A Catalyst for Innovation

Executives report open banking as more than a compliance obligation, embracing secure data connectivity as a competitive tool.

Over half (57%) of executives view open banking as a business advantage, recognizing that it enhances customer experiences, provides greater convenience, and unlocks new strategic opportunities. Similarly, 54% of executives identified open banking as critical to their strategic priorities. Notably, some bank leaders were unaware that new open banking regulation may further unlock business opportunities by increasing availability of consumer-permissioned data. Only 54% of respondents recognized that many fintechs, payments apps, and digital wallets will also be required under the new regulation to make secure consumer-permissioned data freely available, which can further unlock banks’ ability to use this data to build more personalized, innovative, and holistic consumer products and services. Banks can increasingly leverage consumer-permissioned data from fintech accounts just as fintechs today leverage consumer-permissioned bank data to power their services. Approaching open banking with a two-way data strategy can empower institutions to deliver more holistic, consumer-centric experiences and drive long-term growth.

3. Partnering for Success in the Open Banking Ecosystem

Working with a trusted open banking partner matters.

Open banking compliance doesn’t need to be a solo effort. Bank executives report that working with the right partner gives them advantages across the board, whether it's for compliance or innovation for their business - or both. Banks that use Plaid services report significantly higher confidence (61% very confident) in meeting regulatory requirements compared to non-Plaid users. Among survey respondents familiar with Plaid, 92% believe the company is well-positioned to guide organizations through the complexities of 1033.  Executives want a comprehensive suite of services - spanning API technology, compliance tools, and authorization management — to enable their institutions to seamlessly implement open banking technology. Organizations can find the right partner to enhance regulatory readiness and deliver secure, innovative financial solutions.

4. Regional and Smaller Banks Face Unique Challenges

Executives at regional and smaller banks report concerns about lagging in their open banking adoption and digital implementation for their business.

Regional and smaller financial institutions (institutions with between $500M- $10B in assets under management) recognize the competitive necessity of adopting open banking, with 55% considering it vital for staying competitive. But many feel less confident in their readiness. Only 54% of executives at these banks report feeling prepared to leverage open banking in their business, compared to higher levels among larger peers. As consumer expectations for digital connectivity grow, small banks must prioritize investments in technology and tools to remain competitive. Open banking offers opportunities to enhance fraud prevention, strengthen security, and accelerate customer-focused digital transformation, all of which are critical  to retaining relevance in a rapidly evolving market. Now is the time to prioritize these investments.

Driving the Future of Finance:

Open Banking represents a transformative shift in the financial services industry. By aligning regulatory compliance with strategic innovation, financial institutions can meet consumer expectations, foster trust, and achieve sustainable growth. Plaid is proud to partner with banks of all sizes to navigate this journey and embrace the future of open banking.

To learn more about how Plaid can support your organization’s open banking journey tune in or contact us today.