Open banking is being phased in from July 2019, making it easier for you to switch banks and get a better deal. It could even result in fintechs being a more viable option for you over a traditional bank.
But what is open banking exactly, how much control will it give you over your own data, and what are banks doing about potential privacy issues?
“Two years ago, Open Banking was regarded by many as a typical compliance exercise championed only by a handful of FinTechs – more tech spend driven by compliance rather than business case or customer need. This is no longer the case. Banks have very firmly moved from viewing Open Banking as a compliance exercise to an opportunity to compete and innovate.
The City of London Corporation has released a short video “Demystifying Open Banking” to help the public understand how it works. Open Banking was created to transform the way customers bank online. It aims to re-energise the banking sector by making it easier for customers and small to medium-sized businesses to give access to their data so they can compare services and access new, potentially more competitive products.