Debate on the future success of open banking raises important questions as to how it can be successfully delivered and communicated to customers. Selling a wide range of new banking services with benefits which are tailored to an individual’s personal circumstances is all well and good, but how many consumers will readily permit banks and companies to share their data?
The Open Banking Framework wishes to keep barriers to participation low, and key to its success will be helping consumers understand the value to them. Secondly (and undoubtedly pivotal) will be a requirement to highlight the confidentiality regulations to help alleviate any security concerns.
Many of us readily input our personal details into price comparison websites and use third party providers for online payments. We use a myriad of apps which can track our exact location, tell our Uber driver where we are, store personal documents and photos, and save payment details; we’re all becoming used to targeted advertising online based on our behaviours and demographic profiling.
Digitally sharing our personal details and data isn’t new, and therefore it’ll be a case of easing consumers into a new way of thinking about banking. Starting with selling the unique benefits which open banking will generate…
With this in mind and using Harris Interactive’s Concept Express service, we tested consumer appetites for a number of different open banking concepts: ‘a secure mobile app that warned you if you were about to go overdrawn, or prompted you to move money from your current account into savings or overpay the mortgage’, and ‘a secure web-tool that has all your financial information in one place and enables you to see how much money you have in total and your progress towards any goals like a retirement fund’. Each concept was tested to be coming from either a well known bank or digital payments provider, so we could assess whether it was important for these tools to be provided by a traditional bank versus a digital player.
We found that:
However, opinion is less positive when it comes to security concerns as…
The survey was conducted online in February 2017 amongst 625 UK adults aged 18+ using Harris Interactive’s automated Concept Express concept testing service.