NatWest: 42% of UK businesses would adopt Open Banking for increased security

Forty-two percent of British businesses are keen to integrate Open Banking into their operations citing the potential benefits of increased security and fraud prevention.

This comes as a study by Payit, NatWest’s Open Banking payment solution, found that one in five (22%) businesses spend more than six hours per month managing and storing sensitive customer information, such as card details. And with Open Banking solutions, they could use this time to build and grow their business.

So why has Open Banking not been widely adopted across businesses?

Despite a range of advantages, many businesses remain hesitant, as a quarter (28%) of businesses claim to have not yet implemented Open Banking due to a lack of understanding. This comes at a time when two-thirds (67%) of businesses have experienced issues when processing payments that disrupt their business operations. Therefore, now could be an ideal time for businesses to consider an alternative, such as Open Banking.

44% of businesses report inefficiency that often leads to cash flow issues, preventing timely payments to suppliers and staff.

These issues are not felt exclusively by businesses – but can also impact the end consumer. More than half (56%) say slow refund processes have worsened customer experience or cost them sales, which is coupled with an inefficient or overly complicated checkout journey for customers (51%).

As card payments dominate the online landscape, businesses may be missing out on the benefits that Open Banking offers. With faster transaction times, streamlined customer payment experiences, and improved security – eliminating the need to store sensitive card data – Open Banking presents a viable alternative.

Consumer trust is essential for new technology adoption. Notably, 90% of businesses express confidence in established banks to provide secure Open Banking solutions compared to three quarters (76%) who trust fintech alternatives.

Addressing any current misunderstandings surrounding Open Banking and collaborating with businesses to understand their unique challenges will enable businesses to foster greater efficiency, unlocking the potential to scale and capitalise on growth opportunities.

Lee McNabb, head of payments strategy & partnerships, NatWest Group

Lee McNabb, head of group payments strategy at NatWest, 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.”

Alex Marsh, chair of Salad, and non-executive director of the Centre for Finance, Innovation and Technology (CFIT), added: “Salad’s rollout of Payit is a brilliant example of Open Banking innovation transforming financial services for consumers – enabling simple, secure bank transfers, no more 16-digit card numbers. By removing friction and giving customers the flexibility and security they’ve asked for, we’re delivering fairer, faster, more empowering ways to manage their money.

“Beyond Salad, it’s exciting to see Open Banking’s potential scale across the consumer journey – redefining payments and responsible lending, boosting inclusion, and unlocking real-life benefits for businesses and individuals.”

Further reading: Salad Money makes Payit by NatWest available via online portal