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In 2018, Open Banking was hailed as a revolution in financial services. British regulators led the way, mandating data-sharing frameworks that promised to empower customers, foster innovation, and intensify competition.
Open Banking in the AI era
Banks and fintechs alike saw it as a once-in-a-generation opportunity to reshape finance.
Yet, seven years on, that early optimism has faded.
Despite significant technological progress, many institutions struggle to demonstrate meaningful returns from Open Banking investments.
Data remains fragmented, underused, and often disconnected from genuine business needs. For many incumbents, what began as a bold experiment has stalled — yielding more compliance projects than competitive breakthroughs.
Now, artificial intelligence is rewriting the rules. AI is transforming Open Banking from a regulatory requirement into a strategic weapon.
Financial institutions that adapt fastest stand to turn decades of untapped customer data into predictive insight and competitive differentiation.
Those that hesitate risk being outpaced by agile disruptors who have built AI into their DNA.
Customer Data Becomes the Prime Asset
At the centre of this transformation is data — the most valuable currency in modern finance.
Open Banking made vast volumes of customer data accessible, but banks have long struggled to convert it into business impact.
The challenge has been less about data availability and more about data interpretation.
Here, AI changes the equation.
When combined with Open Banking datasets, large language models (LLMs) and predictive analytics can deliver hyper-personalised financial products, anticipate customer needs, and deepen engagement.
The result is a powerful feedback loop: the more personalised the experience, the more valuable the data becomes — fuelling innovation and growth simultaneously.
Building Trust Is Key to Unlocking the AI Dividend
Success in the AI economy depends on more than technology. It depends on trust. Customers will only share and consent to the use of their data if they see tangible value in return.
Financial institutions must therefore design transparent, responsible AI systems that deliver clear benefits — from smarter budgeting tools to fairer credit decisions.
In return, they will earn the data capital required to compete at scale.
Rip Up the Open Banking Playbook
To seize the opportunity, financial institutions must abandon incrementalism. The traditional Open Banking playbook — slow innovation cycles and siloed data teams — no longer applies.
Banks must act with the speed of disruptors, embedding AI not as a one-off project but as a continuous driver of transformation.
“Move fast but don’t break things” should be the new mantra.
By fusing AI with Open Banking, institutions can move beyond compliance to differentiation — creating the intelligent, personalised, and trusted financial ecosystems that will define the next era of digital finance.
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