Open Banking for UK SMEs

Kathy Ellison



Open Banking is one of a package of reforms introduced by the CMA in order to drive more competition in the retail and business banking market. Open Banking will enable personal and small business customers to securely share their data with other banks and third parties, allowing them to compare banking products on the basis of their own requirements and to manage their accounts without having to use their bank.
In order to understand businesses’ attitudes and potential barriers to Open Banking, Charterhouse Research conducted some qualitative depth interviews among SMEs in Spring 2018. This was to complement a large quantitative survey run last summer.
Research from Charterhouse has found that many businesses will be receptive to the services that Open Banking enables but it is likely to be a slow burn.
Awareness of the concept is superficial and businesses have not had sufficient exposure to tangible propositions in order for them to see the potential and advantages.
Once potential propositions are explained, there is a good degree of positive response. However, there are also some very clear barriers that will need to be addressed, most notably their security concerns. It must be made clear that the customer is in control and it is an ‘opt-in’ function and it will not lead to just unwanted promotions.
A number of early adopters would try the services but others will wait to have any fears allayed before taking up more tried and tested propositions.
You can download Charterhouse’s whitepaper in PDF format by clicking the download button (top right).

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