- PIMFA calls for a review of Financial Ombudsman Service's past cases and training
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- NatWest makes £150m available for Women in Business
- Government data sharing scheme will reduce SME finance gap, says Equifax
- Survey shows 6 out of 10 people would consider cryptocurrency investment
- UK Finance responds to SME Finance Monitor Q4 2017
- Lloyds Banking Group provides further funding for housing expired
- Study shows savers want strong ROI but majority are fooled by low-return ‘safe’ options expired
- Transforming culture in FS firms is positive, but will be hard to get right, says EY expired
- Investor sentiment reflects Brexit voting pattern, says Lloyds expired
- Fed Board will not object to Capital One’s resubmitted capital plan expired
- UK Finance responds to FCA call on banks to reform company culture expired
12th January 2018
Consumers will benefit most from Open Banking, says Plum
Commenting on the implementation of Open Banking, Victor Trokoudes Co-founder and CEO of Plum, said: “Open Banking is a technical change that will hopefully bring full transparency to the financial services. For too long, banks have been guarding customer data instead of using it in a way that benefits them. In fact, banks in the UK have been so defensive that most of them had clauses in their T&Cs that prevented people from sharing their data.
“With this transparency, banks will become a commodity; the rails for money to flow, but fundamentally the value will not be provided by them as they are increasingly positioned to promote their services to customers. More than this, Open Banking means open competition in the financial services industry – and it will be the consumer who benefits most from this. Up until this point, financial service providers have been purposely vague about the true cost of overdrafts, borrowing, FX, etc. Open Banking means that this information can be made very clear via the data in people’s bank accounts.
“We anticipate a host of new providers coming to the fore in the wake of Open Banking. But these will be different to traditional banks, acting more like advisors to people’s financial life (from saving, to investing, to finding the right financial products). Users will still use their current provider to transact, but will manage everything else via these new wave of ‘added value’ providers that are focussed on offering services that make their users better off.
“In future, the value the financial service provider brings to its customer will trump everything else. We think the providers that embrace this transparency to bring this added value to their customers will end up winning the day – and we don’t think these will be the main providers of today.”