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Gaining consumer trust proves challenging in open banking - study

Monday 2 July 2018 14:15 CET | News

UK-based Prepaid International Forum has issued a study tackling the importance of consumer trust regarding open banking in today’s economy.

The study indicates that only three out of ten British adults are willing to hand over access to their financial data to technology companies such as Apple, Google or other third-party applications using their platforms. A persistent problem, according to the study findings, is that the majority of the public does not possess a sufficient understanding of what Open Banking and the Revised Payment Service Directive (PSD2) legislation actually are.

The task facing the industry-at-large is in part to educate consumers on the new legislation. Open Banking regulation in the UK came into force on 13 January 2018 to coincide with the implementation of PSD2 and pushes the UK’s nine biggest banks to open up their data, thus presenting an opportunity to fundamentally change the way consumers use banks and their services.

The PIF study also revealed that younger bank customers are far more likely to give banks the permission required to share their financial data with approved technology partners. Over one third (34%) of 18 to 24 year-olds would be happy to provide permission to their bank to share their data with a company such as Apple, compared with under one quarter (24%) of those aged 65 or older.

The proliferation of mobile devices, and the increasing ease with which today’s youth welcome new technological advancements are likely drivers behind these statistics, according to Prepaid International Forum.


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Keywords: Prepaid International Forum, UK, Open Banking, study, survey, Revised Payment Service Directive, PSD2
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