Peer2Peer Finance News
The UK's first peer-to-peer finance magazine for investors and the industry
  • Home
  • News
    • Personal Finance News
    • Industry News
    • SME News
    • Global News
  • Property
  • IFISA
    • IFISA Guide
  • Video
  • Open Banking
  • Cryptocurrency
  • Features
    • Joint Ventures and Promoted Content
  • Comment & Analysis
  • What is P2P?
  • Partners
  • Events
    • Past Events
  • P2P Power 50
    • Power 50 2020
    • Power 50 2019
    • Power 50 2018
    • Power 50 2017
  • Sign up to our e-newsletters
  • Magazine
  • Directory
  • Jobs
  • My Account
    • Manage Account
    • Change Password
    • Log In
    • Log Out
shutterstock_1069434818
April 16 2018

Security concerns remain major stumbling block for Open Banking

Tim Evershed News, Open Banking Crealogix, Jo Howes, open banking, PDS2

CONSUMER concerns over digital security are a major stumbling block for Open Banking, according to new research.

A survey by banking software provider Crealogix Group showed that 46 per cent of consumers are concerned about the security implications of Open Banking, including identity theft and data breaches.

And 69 per cent of consumers said that Open Banking was not a good idea, primarily because of those security concerns.

Read more: Open Banking firm joins UK trade mission to NY Fintech Week

The Open Banking data-sharing initiative, which mirrors the EU’s Payment Services Directive II (PSD2), mandates high street banks to share anonymised customer data with approved third parties, which can include peer-to-peer lenders.

“PSD2 brings fundamental change to the entire banking industry, but consumers are not being informed properly about the benefits, leaving them fearful of data breaches,” said Jo Howes, commercial director at Crealogix.

Read more: Open Banking prompts UK fintechs to reassess collaboration partners

“The regulation puts the consumer in the driving seat, providing choice and better control. It will increase the intensity of competition, ultimately leading to innovation.

“Traditional players who merely respond by doing the minimum necessary to become compliant will see their influence dwindle.”

Crealogix’s study of 2,000 consumers across the UK shows some of the obstacles Open Banking must address before it will see wide-scale adoption.

The research showed that younger, digital native, respondents were less concerned about security and protecting their data with only 28 per cent of 16 to 34-year olds expressing this fear, versus 64 per cent of the over-55s.

Read more: Lending Works unveils Open Banking partner

Security concerns varied widely across regions too with Londoners least concerned and those in Scotland and the East of England most worried.

The research also suggests that banks are not doing enough to communicate with the consumers. It showed that 85 per cent of consumers have either never heard of, or are unsure, what the Open Banking initiative is and how it will affect them.

GLI Finance hopes fundraisings will reverse slow growth of fintech portfolio Infrastructure and energy crowd bond platform launched

Related Posts

Bag with money and word Pension and up arrow with coins. Increase pension payments. Saving money, retirement. Future investment. Accumulation of pension contributions. Loan portfolio growth.

Industry News, News, Personal Finance News, Top 3

Which P2P platforms offer SIPPs?

Repossession word cloud

Industry News, News, Personal Finance News, Top 3

FCA confirms that consumer repossessions will resume as a last resort

Manchester Skyline UK

Industry News, News, Top 3

London, Manchester and Cambridge have the ‘perfect’ tech ecosystems

Popular posts:

  • Everything we know about the CBILS successor scheme (so far)
  • Banks begin freezing accounts suspected of bounce…
  • LendInvest bond value lost £5.8m during pandemic
  • RateSetter to return to full interest for investors
  • Losses narrowed at Lending Works before Intriva takeover
  • NCA senior officer warns of “substantial” Covid loan…
Back To Top
  • Home
  • Contact
  • About
  • Team
  • Advertising
  • Subscribe
  • Privacy
  • T&Cs
  • Disclaimer

Follow Us on Social Media

© Peer2Peer Finance News 2020
• Additional design by