Open Banking: innovation to solve customer needs as banks wake from slumber

Open Banking: innovation to solve customer needs as banks wake from slumber
09.08.2018 11:59 am

Open Banking: innovation to solve customer needs as banks wake from slumber

Banking

Consumer education, awareness & incentive remain vital to success

Two years on from the CMA market review which initiated Open Banking, Jake Ranson, banking and financial institution expert and CMO at Equifax Ltd, anticipates profound long term impact:

“Open Banking was established to encourage competition. It’s well known that current account switching remains low, but this doesn’t reflect the full story. The initiative has been a wake-up call for traditional banks to improve their understanding of their customers and tailor services to their needs. Consumers won’t necessarily have to switch to experience improvements in their banking services. 

“Since inception two years ago, Open Banking has prompted exciting and much needed product developments to facilitate faster and more effective banking services for consumers. Many providers have applied for Open Banking regulatory permissions, showing the huge appetite to offer new and improved services.

“The services that will really take off are the ones that give consumers transparency, control and save them valuable time. Consumers need a compelling reason to share their data, whether it’s faster lending decisions or the ability to access financial products better suited to their needs, and providers must articulate the value clearly in order to succeed.

“The potential next steps are vast. We could see services that go beyond banking data, encompassing for example social media information so that consumers can manage their data in one place to gain easier access to tailored services. More and more companies are likely to get involved, potentially including players as varied as online estate agents and debt management companies.

“Momentum is building but there’s still a need to educate consumers on how Open Banking can improve their financial lives. Equally important is reassurance that they maintain control of their data, it will only be used with their permission and they can revoke access at any time.”

 

Related News

Click and Collect Payment Fraud Increases 13 Percent DUring 2018 Peak Holiday Season

New benchmark data from ACI Worldwide (NASDAQ: ACIW), a leading global provider of real-time ... Read more »

VietinBank achieves Verified by Visa certification with support from Compass Plus

Compass Plus, an international provider of retail banking and electronic payments software to payment processors and financial institutions, has announced that Vietnam Joint... Read more »

Falcon strengthens its first-mover position in blockchain banking by introducing direct transfers of cryptocurrencies

As the first Swiss private bank, Falcon introduces direct transfers of selected cryptocurrencies for both private and institutional clients.

Falcon... Read more »

PrePay Solutions Partners with PayQuicker in USA

PrePay Solutions (PPS), Europe's leading digital banking and payments provider, has officially partnered with USA-... Read more »

FIME boosts payment strategy on security and consulting with key hires

As part of the ongoing expansion of its banking and payments security and consultancy offering, ... Read more »

Magazine
ALL
Free Newsletter Sign-up
+44 (0) 208 819 32 53 +44 (0) 173 261 71 47
Download Our Mobile App