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Peer2Peer Finance News | December 14, 2018

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Open Banking has “returned power to consumers”

Open Banking has “returned power to consumers”
Marc Shoffman

ONLY half of consumers have switched banks despite many more experiencing problems with their current provider, but Open Banking is predicted to change that.

Research by mobile banking software firm Crealogix UK, released on Wednesday, found 82 per cent of people surveyed had experienced issues with their bank but just 51 per cent have switched.

The poll of more than 2,000 consumers found only 24 per cent would switch immediately if they saw a better deal on offer, while 41 per cent would wait to see if their bank could match it.

Read more: Zopa launches income verification tool using Open Banking data

Mike Bradford, chief executive of Crealogix UK, suggested Open Banking – which mandates high street banks to share customer data with third parties such as peer-to-peer lenders – could help remove the complications of switching.

Read more: Most people in the dark about Open Banking

“Long gone are the days when moving banks was made overly complicated by those eager to keep hold of their customers from cradle to grave,” Bradford said.

“From the seven-day switch to the recent Open Banking initiative and API-driven banking, the power is being returned to the consumer. Banks need to change if they are to avoid the fate of the mobile phone networks – once all-powerful now transformed to mere dumb pipes.

“Only those banks that start delivering a more personalised experience to drive engagement and loyalty will survive. The stakes are high.”

Read more: Open Banking could provide £1bn boost for UK economy