The Open Banking movement may get big billing on Twitter and set pulses racing in fintech startups, but for the ordinary person on the street the term is utterly meaningless, if new research from Equifax is anything to go by.
A poll of over 2000 adults conducted by YouGov on behalf of the credit referencing agency reveals that 90% of Brits have not heard of the Open Banking initiative, with 45% of respondents then going on to say that they are not likely to use Open Banking when it becomes available.
The implementation of Open Banking in the UK will enter full-force in 2019, with read-only transaction data initially made available to the public throughout 2017. It is viewed as a crucial component of a Government-sponsored initiative to inject more competition into high street banking and pave the way for innovations in digital customer services by fintech startups.
However, when asked about sharing personal data through Open Banking, 60% of the YouGov poll said they would not consent to this. Consumers’ concerns about data being shared included security (67%), and that third parties would be able to contact them (62%).
Jake Ranson, banking & financial institutions director at Equifax UK, says more needs to be done to educate customers on how they can personally gain from Open Banking.
“It’s concerning that such a high number of the population are unaware of Open Banking, something the industry needs to remedy for all parties to reap the full benefits," he says. "Not only will the initiative transform the customer banking experience by enabling consumers to compare and save on current accounts, it will also help them look for mortgages more easily and access better terms for loans."