The announcement by the Competitions and Market Authority (CMA), in August to implement Open Banking is set to transform how data is shared and how traditional banking is managed by the bank and the customer. This new regime will give people a much better understanding of the benefits they can receive from their bank through transparent, clear and fair communication.
Competition is intended to increase as individuals begin to switch suppliers and accrue the benefits of new services. The data sharing that Open Banking facilitates will also make the switching process much easier and generate fresh insight for service providers based on access to more detailed information on a customer’s financial behaviour.
This paper outlines the opportunities and risks that Open Banking presents, highlighting the areas that financial service providers need to consider to capitalise on the opportunity and safeguard customers.