Open Banking is one of the most exciting developments in financial services for years, with the potential to revolutionise how consumers engage with financial products and services. For example, consumers will find it easier to review their financial position across different accounts and payments will be disrupted, with new parties initiating payments and moving into the territory occupied by debit and credit cards.
Our new report focuses on the key issues around Open Banking, including:
Based on our work in conjunction with Innovate Finance, it is clear that customer trust is key to Open Banking's success and, assuming the trust is there, we believe that changing consumer behaviour will require incentives – otherwise there is a risk that consumers will stick with the status quo.
We expect banks and fintechs to collaborate to create new banking products and services. This is a fast-moving area and the issues are emerging - this report is "version one", kicking off a discussion we expect to evolve. Add your voice to that discussion.
Open Banking ushers in a brave new world, a world in which those who embrace its opportunities will flourish.
'A single point of responsibility for cyber risk in the financial services sector' should be considered, says Tyrie