Consumers need educating about Open Banking initiative, research shows
A study commissioned by digital banking solutions provider CREALOGIX Group has highlighted the need for more information on the Open Banking initiative for consumers.
The research surveyed 2,000 consumers and found that more than 85% have not heard of or are unsure of what Open Banking is, suggesting that banks need to educate their consumers about the initiative.
Nine banks are included in the Open Banking initiative, which was introduced earlier this year by the Financial Conduct Authority to boost competition in the banking sector and enable new banking products and services to be created.
Just 14.3% of those surveyed were aware of the new Open Banking rules, while 22.8% were provided with information on the initiative from their bank or building society.
As a result of a lack of information on Open Banking, many consumers were found to be concerned about the new rules, which allow banks to share data with third parties. More than 45% of respondents said that they were concerned about security issues surrounding the initiative, such as data breaches and personal identity threats.
Commenting on the impact that the lack of Open Banking information has had, CREALOGIX UK CEO Michael Bradford said: “Banks should have communicated with their customers more thoroughly regarding the Open Banking initiative. Failure to do so has caused confusion and fear.”
He added: “Yet, rather than being something to be afraid of, Open Banking should actually positively transform our relationships with our banks.”