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Open Banking could provide £1bn boost to economy
12 Apr, 2018 | Ian Bradbury
Open Banking will see a fundamental change to the way people can bank, manage, and spend their money in the digital world
Considering the impact and popularity of the likes of Metro Bank and Monzo, even before the Second Payment Services Directive (PSD2), Open Banking will see a fundamental change to the way people can bank, manage, and spend their money in the digital world.
By increasing competition, it is clear that this move will raise the bar in terms of product quality, pricing, and service provision. However now we can now also put a price on the benefit to the UK economy – an impressive £1bn.
While this paints a rosy picture for the future of British banking, our latest report revealed that a fifth of the UK public believes that cybercrime and hacking are the biggest challenges facing the UK today (above global economic uncertainty and the skills gap). This could seriously undermine the efforts to open up the industry to new entrants, by putting people off sharing their private information. Open Banking will highlight the a more important need for the banking industry to take data privacy as seriously as the public does.
Half of UK financial sector leaders believe banks will not exist in their current form in a decade, our report found, which emphasises that we’re on the brink of major change. Open Banking will help build a very different financial services sector, meeting the needs of the digital consumer – but only if we are able to overcome the cybersecurity barrier.”
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