New research from YouGov has revealed that 72 per cent of adults in the UK have not heard of 'open banking' while just one in three (28%) are aware of the term.
Surprisingly enough, older age groups are more likely to be aware of open banking with 39 per cent of those aged 55+ have heard of open banking compared to just 14 per cent of those aged 18-24.
Additionally, more affluent Britons in the ABC1 group (35%) were more likely than those in the CD2E group (18%) to have heard of the term.
During its research, YouGov provided with respondents to its survey with a clear description of open banking. Despite this, 45 per cent of those surveyed did not understand how they could use open banking compared to 18 per cent who did.
Sharing data is a barrier open banking will have to overcome with over three quarters (77%) concerned about sharing their financial data with companies besides their main bank while six per cent would not be concerned and 16 per cent were not sure. Only 12 per cent of respondents said that they would be prepared to share their financial data in order to access new and innovative products or services.
The general level of satisfaction consumers have with their bank is another barrier which must be overcome. Almost two thirds (63%) stated they were satisfied with the service from their current financial institution and would not be interested in using banking services from other companies.
As a result of such low levels of understanding as to what open banking really is, 63 per cent of those surveyed are not sure whether open banking will be a positive change that will actually benefit consumers.
Director of Financial Services Research at YouGov, Matt Palframan offered further insights on the research, saying:
“The introduction of open banking was hailed as a revolution for the financial sector, however what we’re actually seeing is more of a slow and silent evolution. More needs to be done to allay consumers’ fears about data security whilst financial service providers will also need to ensure that there are real benefits for consumers who are prepared to share their data in this way. It is surprising that the older generation is more aware of open banking, as we may expect a younger, more tech savvy audience to be interested in the ground-breaking products and services. The reality may be that true innovation is yet to take place and the products and services currently available are not really considered necessary.”
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