While the banking sector in the UK focuses on implementing exciting new open banking technology, 90% of UK consumers have never heard of it
According to research from Equifax, when consumers were asked if they had heard of open banking, nine out of ten respondents said they had not.
When told about open banking, only 27% stated that they would be in any way likely to use it. A larger percentage (28%) simply did not know if they would or not.
When asked if they would consent to their data to be shared within the open banking framework, 60% said that was unlikely.
Consumers had many concerns over open banking. 67% were scared that their data would fall into the wrong hands and 62% thought it would lead to undesired contact from third-parties. 49% of respondents were worried about their own personal privacy. Only 7% did not have any concerns about their data being shared.
Jake Ranson, banking and financial institutions director at Equifax, told RBI: “It is not only important to educate the consumer on how open banking works, it is just as vital that they understand the value of their personal data when sharing with third parties.
“The responsibility lies not only with banks, but with fintechs, the government, consumer and business groups. While banks should work individually to communicate open banking to their customers, all these groups can work together to develop a consumer education campaign to explain how it works, what consumers need to know and when it will be available.”