A new report by Payit, the Open Banking payment service from NatWest, reveals that 42% of UK businesses are considering the adoption of Open Banking to improve security and tackle fraud. This growing interest comes as companies grapple with the inefficiencies of managing sensitive customer data through traditional methods.
According to Open Banking Expo, the research highlights that 22% of businesses spend over six hours each month storing and managing sensitive data like card details. The implication is clear: those hours could be better spent driving growth, especially when Open Banking could eliminate the need to store such data by enabling direct, secure bank-to-bank payments.
However, adoption has been slow. The study found that 28% of businesses have not yet implemented Open Banking due to a lack of understanding of how it works. This hesitation persists even though two-thirds (67%) of companies have experienced payment processing issues that negatively affect operations.
The report also sheds light on wider operational challenges. Some 44% of businesses report inefficiencies that have led to cash flow problems, resulting in delayed payments to staff and suppliers. Moreover, customer-facing issues are also prevalent: 56% of businesses say slow refund processes have damaged customer satisfaction or lost them sales, while 51% believe their checkout processes are overly complex.
Open Banking could help resolve many of these problems by offering faster payment processing, streamlined checkouts, and enhanced data security. Despite this, businesses continue to place more trust in traditional banks than FinTechs. According to the findings, 90% of firms trust banks to deliver secure Open Banking solutions, compared with 76% who say the same of FinTech providers.
NatWest head of group payments strategy Lee McNabb said, “Businesses are increasingly recognising the need for more efficient and secure payment methods such as Open Banking. Payit by NatWest delivers solutions that not only caters to operational efficiency but enhances user experience and empowers businesses to offer their customers a wider choice of payment options promoting user satisfaction.
“Payit not only allows businesses to optimise cash flow and make informed decisions using real-time insights and transaction tracking, but it also delivers seamless, secure, and rewarding experience customers.”
Read the full post on RegTech Analyst here.
Source: https://fintech.global/
