At EBAday 2024, industry leaders emphasized the need for financial institutions to transform their business and operating models to achieve bespoke and modular digital solutions while enhancing profitability. The conference, held from June 18-19 in Lisbon, focused on open banking and embedded finance as pivotal drivers of digital transformation and efficient payment solutions.
Open banking and embedded finance are increasingly being adopted to facilitate seamless and efficient payments for consumers. Financial institutions are leveraging open APIs to enhance their financial product offerings, championing the embedded finance market, which is projected to be worth $22 billion by 2028, with a growth rate of 148% over the next five years.
Embedding finance capabilities allows financial organizations to develop new revenue streams and provide merchants with rapid access to capital, revolutionizing e-commerce through open banking and embedded finance. EU legislation, such as PSD2, aims to deliver more efficient and personalized financial offerings within the EU. The European Payment Council’s (EPC) SEPA Payment Account Access (SPAA) scheme sets standards for transactions and the exchange of payments, further driving open payments in the EU.
Last year, the EPC published business conditions for the SPAA scheme, marking a significant step towards open banking in the EU. This scheme builds on the foundations laid by PSD2, outlining a future framework for open banking.
EBAday 2024 features multiple sessions highlighting the latest developments in open banking and embedded finance, underscoring their importance in the ongoing digital transformation of financial institutions. As these technologies continue to evolve, they promise to reshape the landscape of payments and financial services, offering new opportunities for growth and innovation.