Three quarters haven’t heard of Open Banking

Almost three quarters (72 per cent) of UK adults have not heard of Open Banking, while just one in three (28 per cent) are aware of it, according to a YouGov survey.

In terms of who has heard of the term, it is those in the older age groups that are more likely to be aware. Almost 40 per cent of those aged over 55 have heard of open banking, against just 14 per cent of those aged 18-24.

YouGov stated: “It is surprising that the older generation is more aware of Open Banking, as we may expect a younger, more tech savvy audience to be interested in the ground-breaking products and services. The reality may be that true innovation is yet to take place and the products and services currently available are not really considered necessary.”

The pollster provided those who answered the survey with a clear description of the banking reforms, but 45 per cent still did not understand the ways they could use Open Banking, against 18 per cent that did. Perhaps due to this lack of understanding, 63 per cent were not sure either way about whether Open Banking is a positive change that will really benefit consumers – 14 per cent believe it will benefit, against 22 per cent that did not think so.

Of those aware and understanding Open Banking, over three quarters (77 per cent) were concerned about sharing their financial data with companies other than their main bank, whilst just 6 per cent were not be concerned. Just 12 per cent stated that they would be prepared to share their financial data in order to access new and innovative products or services.

Another barrier to take up is the general levels of satisfaction people have with their bank. Approaching two thirds (63 per cent) said they are satisfied with the service they get from their current bank and are therefore not interested in using banking services from other companies. Those aged 55 and over were most likely to say this (72 per cent).

Account aggregation was seen as the most innovative service related to open banking (20 per cent said this), ahead of money management (8 per cent), choosing the right account (7 per cent), account management (7 per cent) and buying things (7 per cent).

The YouGov statement called Open Banking more of a slow and silent evolution, rather than an industry revolution.

“More needs to be done to allay consumers’ fears about data security whilst financial service providers will also need to ensure that there are real benefits for consumers who are prepared to share their data in this way,” it read.

An Equifax survey last month found 40 per cent of Brits were willing to share their bank transaction data with a new lender if it provided them with product recommendations which save them money.

Perceived benefits 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).

Meanwhile, a report from PwC suggested the Open Banking sector could be worth £2.8bn by the end of this year and £7.2bn by 2022, with 71 per cent of small and medium-sized companies expecting to adopt Open Banking by 2022, along with 64 per cent of adults.

However, six months after the second payment services directive (PSD2) was introduced across Europe, experts agreed that progress has been slow, although many expected plenty of new products, partnerships and communication from banks and FinTechs in the next six months.

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