ONE THIRD of small businesses are “wide open” to the opportunities presented by Open Banking, if it helps them save time around their payments and taxes, a new survey has found.
However, another quarter of small- and medium-sized enterprises (SMEs) said they would not share their data under any circumstances.
Accountancy firm KPMG partnered with research firm 3GEM to survey 1,000 SMEs about their attitudes to data sharing.
High-growth businesses in the technology, media and telecoms, finance and manufacturing sectors were the most interested in Open Banking, the survey found.
SMEs told KPMG that they would only share their data if it made it easier for them to manage their payments, business accounts, invoicing or taxes, or if it saved them a significant amount of money.
Offers and immaterial discounts were no incentive for the respondents.
Read more: SME loan made using Open Banking data
“Open Banking is yet to deliver the competition the regulator intended, and a large segment of the population has yet to be convinced by its potential,” said John Hallsworth, partner at KPMG UK. “But the SME market has the potential to kick start the Open Banking revolution.”
Open Banking is a data-sharing initiative that mirrors the EU’s Revised Payment Services Directive. It mandates high street banks to share anonymised customer data with approved third parties, which can include peer-to-peer lenders and other alternative finance providers.