New banking regulations involving customer data sharing and data protection are a "headache for everyone", according to a fintech advisor at the Royal Bank of Scotland.
Alan Lockhart, head of open banking and fintech solutions at RBS said banks are slow to respond and would have to play catch up with the fintech industry due to the new rules in the incoming banking legislation.
Speaking at the London Fintech Conference on Monday, Lockhart said the possibility of fintech startup companies working with banks is a huge opportunity.
"One of the huge opportunities that is right on the doorstep is bringing the strengths of fintech startup companies and getting them working with banks - institutions which have been very closed in their thinking. That's not going to happen overnight because it requires a mindset change," Lockhart said.
He further added that this change in mindset was "inevitable" however and would come over time.
Lockhart's warning comes six months before the European Union's Revised Payment Service Directive (PSD2) comes into force. This directive would enable what those in the fintech world call "open banking", by giving third party non-banking firms - from corporations like Amazon to small fintech startups - the ability to perform payment services for banking customers and access their data.