This story was originally published on Payments Dive. To receive daily news and insights, subscribe to our free daily Payments Dive newsletter. Banks stand to benefit as much as fintechs in a new era of open banking, with consumer financial data flowing freely between the two, generating new insights about the market, fintech executives said Thursday. “The big misunderstanding is that it’s fintech versus bank, and we definitely don't see it that way,” said Ryan Caldwell, the founder and chief executive of ...

Core Insights - The European banking industry is facing significant changes in 2025 due to political and economic uncertainty, competitive pressures, and compliance requirements [2] - Financial institutions are under pressure to enhance customer service while reducing costs, leading to increased technology investments [3] Technology Investment Trends - There is a growing urgency for banks to invest in product development to improve revenue and margins, with a focus on agility and operational efficiency [3] - Digital account opening, open banking, and enhancements to digital channels are key areas for resource allocation [4] AI and Data Analytics Adoption - Strong growth in AI and advanced data analytics technologies, including GenAI, is expected to support various use cases across banking operations [5] - Investments in data management from 2024 will continue to underpin these projects, with a focus on digital identity and automation [6] Key Findings from Research - 54% of banks find it more challenging to win and retain customers compared to the previous year [7] - 50% of banks prioritize investing in enhanced products or propositions as a key driver of their technology strategy [7] - IT spending is projected to grow by an average of 5.0% this year, although economic disruptions may affect this growth [7] - Digital account opening is the top priority for 38% of banks, followed by open banking and improvements to digital channels [7] - AI technologies represent the largest area of technology investment for 29% of banks, with 64% planning to launch customer-facing services using GenAI in 2025 [7]