Banks can use Open Banking to boost customer engagement

A new report from Equifax has revealed how banks can boost customer engagement through Open Banking.

The study identified the best ways that lenders can capitalise on the Open Banking initiative, which was introduced earlier this year and requires banks to share customer data with third-party companies.

Willing

The study found that product developments are the most likely to attract customers to Open Banking, with 40% of respondents saying that they would be willing to share information about their bank transactions if they could have access to products that enabled them to improve their finances.

More than 35% of respondents also said that they would consider sharing their bank data if it enabled them to easily compare products from different financial institutions.

Tailored incentives for switching providers and a more streamlined mortgage application process were also among the top motivations for sharing data, cited by 34% and 28% respectively.

A simpler loan application process also appeals to consumers, with 25% saying that they would be willing to share their data if they could have access to this service.

Transformational

Commenting on how the launch of new products will benefit the Open Banking initiative, Equifax’s Chief Marketing Officer Jake Ranson said: “Open Banking is moving the sector forward to the digital world and it’s an exciting time. As the rate of product launches accelerates awareness will continue to grow, providing the uplift in consumer engagement needed for the project to be truly transformational.”