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Open banking fails to take off - survey

By Abigail Townsend

Date: Tuesday 20 Nov 2018

Open banking fails to take off - survey

(Sharecast News) - Less than 10% of British consumers are using so-called open banking services - with most not even understanding what the term means.

Opening banking is a series of reforms, introduced earlier this, dealing with how banks use their customers' financial information. If requested to do so, all UK-regulated banks must now let customers share their financial data with other banks or authorised parties.

It is intended to promote innovation by encouraging providers to develop new tools to manage money, such as budgeting apps or ones that allow people to view all myriad accounts in one online location. It was also expected to bring more competition into financial services.

But according to a survey by technology firm Splendid Unlimited, knowledge of open banking remains extremely limited.

Just 9% of adults surveyed said they use opening banking, with nearly 80% saying they did not know what term meant or what it entailed. Just 22% had heard of the phrase.

Of those who had heard of it, trust remained an issue. A number reported concerns about a perceived lack of security and privacy, with 26% saying they thought open banking had been introduced solely to allow banks to share customer data.

Paul Bishop, managing director of Splendid Unlimited, said: "Open banking providers are failing to address the lack of trust, privacy and security concerns, and ignorance of the benefits of using their products that have limited uptake of their services to a mere 9%."

Splendid Unlimited, which designs digital products and services, surveyed over 2,000 adults.


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