Open Banking to revolutionise how UK consumers manage personal finances

A study from Network Research has shown that Open Banking is set to revolutionise the way that UK consumers manage their personal finances.

The research has been tracking 500 UK consumers since May 2018 to monitor their awareness of Open Banking and to find out if they are making use of the initiative and how likely they are to use it in the future.

Willing

The study found that more than 55% of UK consumers believe that they are fairly likely to try new financial services to boost their finances, while 34% would be willing to try out a service that reduces the time it takes to compare different financial products and helps them to achieve and exceed their financial goals.

When it comes to awareness of Open Banking, younger consumers are leading the way, with those aged 18-34 being far more likely to be aware of the initiative than those aged 55 and over.

Nearly half of 18-34-year-olds are likely to try Open Banking services in the near future, with people in this age group being found to be far more likely to do so than those aged 35-44 and 55 and over.

Under the initiative, the UK’s largest banks, including Lloyds, Santander and HSBC, are required to allow certain information to be shared with regulated businesses. Information can only be shared if consumers have given their permission.

Changes

Network Research has now launched a new product that will aim to help the finance and retail banking sectors adapt to the changes that Open Banking will bring, with businesses being able to track perceptions and attitudes towards the initiative. Three of the UK’s nine major banks will be taking part in the project, which is called Open, until April 2019.