Less than two thirds have heard of Open Banking

A year on from its launch in the UK, fewer than two thirds of UK consumers have never heard of Open Banking, according to new research.

A Censuswide survey of 2,000 UK consumers for digital banking software firm Crealogix also found that while one in five consumers had heard of Open Banking, they could not confidently explain what it is.

The survey also found that once customers had understood the concept of consumers granting permission to share their financial data between multiple bank accounts and third party service providers, fewer than eight per cent believed that Open Banking was a good idea.

However, this negative view was not replicated amongst all age groups, with younger consumers in the Generation Z and Millennial demographics three times more likely to think of Open Banking as a positive development than their seniors.

Consumers of all ages expressed concerns about privacy and fraud in relation to Open Banking though, with even more Generation Zs and Millennials noting perceived threats than Baby Boomers – 72 per cent compared to 66 per cent respectively.

While consumers remained wary of Open Banking, more than two thirds of all respondents expressed interest in mobile and digital banking features directly associated with its underlying technology and tools, as app-based banking and budgeting become more widespread.

Amongst the features of Open Banking that would be most useful, consumers highlighted the instant transfer of money between different bank accounts (33 per cent); seeing all different bank account and credit card balances live in one dashboard (28 per cent); and a dashboard showing regular monthly expenses which automatically saves spare money (22 per cent).

Anton Zdziebczok, head of product strategy at Crealogix UK, admitted that this research highlights what sounds like a contradiction from consumers. “While they are unaware of what Open Banking is and, to some extent, are fearful of it, they are keen to get the convenient and powerful new features that are being enabled.

“Of course, this is not a contradiction at all: as with any technology, consumers are not particularly interested in what it’s called or how it works: they care about how it can make their lives better,” he added.

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