THE MAJORITY of UK consumers are still unaware of Open Banking, according to new research.
The data-sharing scheme, which was launched in January this year, mirrors the EU’s Payment Services Directive II, mandating high street banks to share anonymised customer data with third parties, including peer-to-peer lenders.
The research, commissioned by challenger bank CYBG and carried out by polling company YouGov, surveyed 4,458 UK adults about their attitudes towards Open Banking.
It found that only six per cent knew exactly what Open Banking is, while over half of respondents (58 per cent) said they were unaware of the initiative, despite it being regarded as a major shake-up to the banking industry.
Over three-quarters of respondents said they were “unlikely” to use Open Banking and 81 per cent replied that they were “not excited” by the scheme.
Security issues dominate the concerns of consumers, with 31 per cent worried their data could fall into the wrong hands and 19 per cent nervous about an invasion of their privacy.
In addition, 18 per cent of those surveyed believe that their finances are not sufficiently complicated to benefit from the service.
“What’s clear from this research is the success of Open Banking is dependent on banks being able to build on existing trust and confidence with their customers,” said Debbie Crosbie, chief operating officer at CYBG.
“We need a real and joined-up effort on this from everyone within the industry if we are serious about bringing about a revolution for customers.
“Many more customers would be excited about Open Banking if it were explained how much it would benefit them financially.”
Read more: P2P lenders gear up for Open Banking launch