Two fifths (40 per cent) of Brits willing to share their bank transaction data with a new lender would do so if it provided them with product recommendations which save them money.

Six months into Open Banking, an online survey of 2,002 adults by Equifax looked into the perceived benefits. They included the ability to easily compare products from different financial institutions (36 per cent), being offered tailored incentives for switching to a new provider (34 per cent), and a streamlined process when applying for mortgages (28 per cent) and loans (25 per cent).

Jake Ranson, chief marketing officer at Equifax, said that since the implementation of Open Banking at the start of the year, there has been a lot of work on product developments among banks and FinTechs, as market players recognise the scope of opportunities available.

“New products and solutions such as HSBC’s credit application offering have come to market, showcasing the real life consumer benefits the initiative can deliver,” he stated.

“As the rate of product launches accelerates awareness will continue to grow, providing the uplift in consumer engagement needed for the project to be truly transformational.”

Meanwhile, the Financial Conduct Authority (FCA) has published a statement relating to the European Banking Authority’s (EBA) draft guidelines on Strong Customer Authentication and Common and Secure Communication under PSD2 – the EU-wide version of Open Banking.

Outlining its approach to implementing key standards under PSD2, the FCA said it encourages account servicing payment service providers to take the option of providing a dedicated interface, such as a secure application programming interface, or API.

Account servicing payment service providers should use standardised APIs - such as those developed by the Open Banking Implementation Entity - as a framework, to the extent that these align with PSD2 requirements.

The FCA plans to consult on changes to its rules and guidance over this summer, to reflect the EBA publications. This will include consulting on the proposed process for making exemption assessments and the level of information required for such assessments.

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