A survey has found over half of UK consumers have said they would like more opportunities to be provided by their bank, as the Open Banking initiative roll-out begins.
In total 53% of consumers would like to see more opportunities and better quality of services for their finances as Open Banking comes into force. The Emerging Payments Association (EPA), a member association of payments industry influencers, has conducted a national survey of 2,038 UK consumers on Fairer Banking.
Only one of the five major UK banks was found to be compliant in time with the Second Payments Services Directive (PSD2) deadline on 13 January 2018. According to the survey, more than half of consumers still have not heard of the initiative that could change the future of financial services. It said 7% of consumers would choose not to have greater control over their finances via FinTechs, while only 20% have been informed of Open Banking by their bank.
The report said there is a clear desire for new financial offerings, yet consumers are being kept in the dark, or worse, being fed misleading messages. One of the most common myths surrounding Open Banking is that it will expose bank accounts to unsafe third-parties.
The survey found that the biggest driver in any financial decision is the security of personal information and more than 40% of consumers mentioned this as their primary concern when it comes to monetary matters. However, 35% of respondents said they are happy to trust new providers, while 34% said they are cautious about regulated FinTechs accessing their information.
The EU General Data Protection Regulation (GDPR) will come into force on 25 May 2018, which will give customers more control over how their personal information is used.
EPA director-general Tony Craddock said: “Open Banking is closed in all but name. More must be done to explain what Open Banking means. Once people understand that their privacy is protected and access to new services is secure, many will use the new non-bank service providers enabled under PSD2.”
The EPA report said banks should adopt the initiative and communicate its benefits. It said: “If banks don’t come on board, consumers are more likely to turn elsewhere to receive the numerous benefits arising from FinTech innovations.” The Fairer Banking campaign educates consumers on the benefits of taking control of their finances, while promoting innovation in the industry.