The 3 Hidden Challenges of Early Adoption in Open Finance — and Why the Leap’s Still Worth It
We’ve explored which countries are embracing open finance, what the benefits are of adopting early and the business use cases for being an early adopter, but what about the challenges that may arise. In this article we look at the hidden challenges of early adoption in open finance.
Higher Initial Investment & Uncertainty
Being first often means bearing the brunt of the initial technology investments and adapting to evolving standards. The lack of a clear regulatory framework can increase risk and operational complexity to adapt it in the future when the regulations are defined, if the initial implementations are not future proofed.
Working with a technology partner who specializes in the ever changing open finance regulations and standards can mitigate this risk however.
Limited Ecosystem & Network Effects
Early adopters might have fewer partners and lower transaction volumes initially. This isolation can make it more challenging to achieve the network effects that drive value in mature ecosystems. But being there early means you’re the “go to” as innovation accelerates.
Integration & Adaptation Risks
As global standards evolve and local regulations eventually emerge, your technology and business models might need frequent adjustments. The regulatory frameworks and standards continue to change as the ecosystem grows and matures. This is the norm, but the early efforts can strain resources and require a robust strategy for continuous innovation.
Why Take the Leap with Open Finance
Yes, the initial investment, ecosystem limitations, and the need for constant adaptation can seem daunting, but this is how true market leaders are made — by embracing challenges and turning them into opportunities. The risks are real, but the rewards of shaping the future, gaining a competitive edge, and reaping long-term benefits are too great to ignore.
We’re your sounding board when it comes to open finance, so get in touch and take the leap.
