Last week, we read Faith Reynold’s report ‘Open Banking : A Consumer Perspective’, which discusses the regulations transforming how customers and their data are treated and better protected.
Sponsored by Barclay’s, it’s an interesting overview of the exciting and powerful ways Open Banking could reshape our experience of financial services.
The gist, if you look at Reynold’s narrative, is that the time has come for financial services to provide something the customer wants, needs and deserves. And it’s what many in finance see as Open Banking’s piece de resistance if you listen to what’s being said by policy makers such as Andy Pinder.
But, hang on, what is "Open Banking"?
You’re not alone if you’ve not heard of it. A poll of over 2000 adults conducted by YouGov on behalf of the credit referencing agency, Equifax, revealed that 90% of Brits have not heard of the Open Banking initiative.
At Starling, we’re passionate about what Open Banking means for people on an everyday level and how this impacts the way we see money. It’s a movement towards enabling consumers and small businesses to share their data, securely, with other banks and third parties.
The main idea is that the change will help us see all of our money – whether it’s savings, investments, loans, or day-to-day accounts – all in one place. We should then be able to better understand our money. Moreover, it’ll be much easier to compare different providers of various products to find the best deals.
So if you’re looking for a mortgage or a new credit card, you won’t get stuck with options from your usual bank – you might find a better option with another bank or a new fintech specialist
Opening Banking will help with easier, clearer, faster, decision-making when it comes to your money.
Attending the All Party Parliamentary Group for Fintech roundtable, we heard about the strategy being developed to ensure consumers benefits whilst providers are held to account. So far, the rules and regulations seem to be ticking all the right boxes.
With the hope of being agile, transparent and able to move fast, the strategy focuses on the features of the market identified by the government as giving rise to adverse effects on competition.
Last year, Andrew Pinder CBE was appointed to oversee the delivery of the industry-wide project as a trustee for the implementation.
As things stand, there’s a huge amount to be done in making it clear to consumers how certain elements of Open Banking work.