You are here: Home - Saving & Banking - News -

CEO issues Open Banking failure warning

0
Written by: Lana Clements
27/02/2018
Open Banking is on course to fail because consumers don’t trust banks and are worried about security and privacy issues, according to the chief executive of Clydesdale and Yorkshire Banking Group (CYBG).

Almost eight in 10 people said they were unlikely to use Open Banking, research by CYBG showed, with more than half completely unaware of the service.

Under the new regulation, banks are obliged to share customer data with third parties to help drive competition in financial services.

But when questioned, one in three consumers had security concerns over the initiative.

People were also worried about an invasion of privacy and felt their finances were not sufficiently complicated to benefit from Open Banking.

David Duffy, chief Executive at CYBG, said: “What’s clear from this research is the success of Open Banking is dependent on banks being able to build on existing trust and confidence with their customers.

“We need a real and joined-up effort on this from everyone within the industry if we are serious about bringing about a revolution for customers.

“Many more customers would be excited about Open Banking if it were explained how much it would benefit them financially.”

Of the number of platforms and apps designed to take advantage of Open Banking, those provided by banks were rated top by respondents, who typically said they would rather access multiple accounts through their bank’s platform than a third-party provider.

The findings chime with a study from CEBR and Trust Pilot that showed providers will need to work very hard to persuade consumers they can be trusted with their current account or business banking data.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

  • According to @YourMoneyUK the #Govt is considering a Care ISA’ which would be exempt from #inheritancetax. Could th… https://t.co/hPVZZfdyDr
  • RT @unitetheunion: “We need tough action against unscrupulous debt collection agencies who prey on people’s misery to ramp up the debt thro…
  • RT @unitetheunion: “We need tough action against unscrupulous debt collection agencies who prey on people’s misery to ramp up the debt thro…
Read previous post:
run out of money
Two-thirds haven’t used their ISA allowance this year

Only a third (34%) of the UK has used an ISA product over the past 12 months, with around half of...

Close