Jake Ranson, Banking & Financial Institutions Expert and CMO at Equifax UK, believes consumers will begin experiencing the full benefits of Open Banking in the year ahead: “January 2019 marks the first anniversary of Open Banking, and we can expect it to play a central role in the banking sector for the year ahead. As more companies evolve the new technology into live customer journeys, consumers will really begin to experience the full benefits of the proposition and demand for Open Banking will increase.
“We could even see services going beyond banking data, for example encompassing social media information so that consumers can manage their data in one place to gain easier access to tailored services. Open Banking also has the potential to play a key role when it comes to addressing problems such as persistent debt. In a society where half of consumers have potential financial vulnerability, Open Banking will support a shift that places greater responsibility and accountability onto creditors, helping the most financially vulnerable in the process.
“Of course, challenges remain – there is still an educational deficit regarding how Open Banking can improve consumers’ financial lives, as well as understanding data’s positive predicative capabilities. Consumers require compelling reasons to share their data, and banks and providers like ourselves need to articulate clearly the tangible benefits the initiative can bring. While the regulatory landscape is facilitating progress, there are hurdles to overcome, not least, further clarification on the interpretation of these regulations. Nonetheless, momentum is clearly building, and we expect 2019 to be a year of substantive progress for Open Banking.”