Consumer Priorities for Open Banking
There’s been a lot written about Open Banking during the last 18 months. However, what do consumers really want and expect from it?
Last year, several organisations met to pen a ‘Consumer Manifesto’ for Open Banking to set out their expectations. This report, published in June 2019, details the aims of Open Banking and asks firms to develop products and services that truly serve their customers. Their real focus should be upon enabling customers and small businesses to feel confident enough to decide for themselves how to improve their financial health. This requires having innovative products, connecting customers to advice, and removing potential blocks preventing them from finding the best solutions. The report gives a breakdown of customers with an overview of their situations and present difficulties, and looks at how Open Banking could overcome them. Tailored solutions, the use of technology and access to better value products will all play their part, and should all stimulate the market.
For customers to benefit from Open Banking, they must be willing to share access to their accounts. But as research repeatedly shows, they want their data and money kept safe. The risks of Open Banking are clearly stated, but if this concept isn’t fully embraced, and not only by big financial institutions, it will become a niche area in which only a few will benefit. Banks need therefore to build trust, deliver value and stimulate the market. This means that portable data must be secure and the appropriate governance must be in place to protect the consumer.
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