Open Banking – What’s in it For Me?

June 27, 2019

Understanding how open banking can benefit customers is key. 

After 18 months, it is fair to say that Open Banking has only made a modest splash in the UK banking pond. Indeed, one recent survey found that only one in five people are aware of Open Banking.

As well as this basic lack of awareness, the backcloth of high-profile data breaches and phishing scams means consumers are ever more suspicious about sharing bank account data with third parties. This has led to a muted response and low adoption rates, leaving the industry facing a PR task to win consumers round.

Open Banking is not the end of a regulatory project but the beginning of a new era of opportunity.  In our opinion, the starting point for the turnaround should be to focus on the many opportunities Open Banking presents.  Educating consumers about the different ways Open Banking services can help them manage their personal finances – and doing much more to allay their security concerns – will be key.

Here are a few ways Open Banking can help your customers:

  • Automated affordability checks for loan applications
  • Account aggregation across different products and providers
  • Simpler payments
  • Financial wellness/insight into spending habits
  • Easy access to better rates and features
  • Use of alternative data where customers have no or thin credit files

Bridgeforce is well positioned to help you navigate this transitional period.  Because we understand the retail banking landscape and the practical application of new technology – as well as its relevance to your customer proposition – we can effectively create a “bridge” between your product team, internal IT department and external service providers to ensure that any solution creates tangible benefit for you and your customers.

We have deep competency in retail banking, and our extensive product and customer journey expertise means we understand what matters to your customers and how their experience affects your bottom line by increasing satisfaction and advocacy.

We have access to a network of contacts in fintech and will be pleased to help you find suitable partnership opportunities that add real value to your customer proposition.

4 out of 5 UK adults have not heard of open banking

According to a recent survey, only one in five UK adults have even heard of Open Banking, with the vast majority of those respondents not having any practical understanding of what it means for them.
Source: Splendid Unlimited “Open Banking: A Revolution Stalled”