More data and more data sharing: Navigating an open banking world

This paper discusses the significant changes which Financial services are undergoing. It lists the change drivers, which can be grouped into three categories that interact with each other: technology, consumer behaviour and regulation. Changes in regulation look set to open up banking and accelerate the pace of innovation. The introduction of Open Banking in the UK and PSD2 across Europe are significant developments in the retail banking and payments landscape, and the paper discusses how these have the potential to create opportunities and propositions that, if developed and delivered well, will benefit society. The fundamental means of realising many of these opportunities is financial data — accessing it, sharing it, processing it and storing it. As we see greater emphasis on the role of data, and consumers’ understanding of the value of their data, the concept of trust will make the open banking journey a success. Getting this right will open up opportunities for firms, consumers and the economy. Getting this wrong could well jeopardise these opportunities. The payments ecosystem is complex, and as it goes through this significant change. The paper advises that a concerted effort is required to put consumers at the heart of the industry’s propositions, to enhance trust and to make this a long-term success.