Businesses Reap Substantial Savings through Open Banking Payments, Reveals NatWest Study

In a recent study conducted by NatWest, businesses leveraging open banking for payments are reporting substantial annual savings of an average of 150 hours, according to Finextra. These hours were typically spent on various operational tasks, including processing invoices, handling financial data, managing recurring payments, and processing refunds.

NatWest’s Payit division surveyed 150 business leaders from organizations in the UK with an annual revenue exceeding £2 million. The findings of the study shed light on the remarkable benefits of adopting open banking solutions.

Business leaders who have incorporated open banking into their payment systems reported dedicating a monthly average of 44.5 hours to finance-related tasks. In contrast, those who didn’t utilize open banking spent slightly over 57 hours per month on similar tasks. Over the course of a year, this discrepancy accumulates to over 150 hours, equivalent to more than four working weeks saved.

The cost implications of not embracing open banking were also evident in the study. Businesses without open banking systems in place found themselves spending an additional £1,687 annually on payment processes, along with an extra £1,117 in card processing fees compared to their counterparts who had adopted the technology. This represents an 8% disparity in annual expenditure, highlighting the financial advantages of open banking adoption.

However, the study also unveiled the key barriers that hinder businesses from implementing open banking solutions, with nearly half (48%) of respondents expressing concerns about cybersecurity risks associated with open banking.

Mike Elliff, CEO of PayIt by NatWest, commented on the findings, stating, «While the concerns around security and fraud are apparent in this research, businesses can be confident that open banking is based on the security inherent in your online or app-based bank account. Wider understanding of this could help tackle barriers to implementation and open opportunities for businesses to lower operational spend and move closer to their objectives.»

NatWest’s research highlights the significant advantages of open banking for businesses, including substantial time and cost savings. As businesses become more informed about the security features of open banking, it is likely that adoption rates will increase, further streamlining operational processes and reducing costs for organizations across various sectors.