- UK mortgage market activity buoyant during November 2017
- Banks grapple with the technology implications of PSD2 and Open Banking
- Envestnet|Yodlee offers banks a solution that complies with PSD2 in the UK
- Italian banks will continue to heal in 2018, says S&P
- Finance sector taking action to address its reliance on paper
- Brickendon asks if it time for financial services to embrace robots
- Money Dashboard welcomes implementation of new banking rules expired
- Digital advancement puts us at risk of being unprepared for death, says Lloyds expired
- EBA Risk Dashboard confirms steady improvements in the EU banking sector expired
- Open Banking promises to save SMEs money and time expired
- Responsible growth delivers solid 2017 results for Bank of America expired
- Goldman Sachs posts Q4 loss of $1.93bn expired
12th January 2018
Consumers will benefit most from Open Banking, says Plum
Commenting on the implementation of Open Banking, Victor Trokoudes Co-founder and CEO of Plum, said: “Open Banking is a technical change that will hopefully bring full transparency to the financial services. For too long, banks have been guarding customer data instead of using it in a way that benefits them. In fact, banks in the UK have been so defensive that most of them had clauses in their T&Cs that prevented people from sharing their data.
“With this transparency, banks will become a commodity; the rails for money to flow, but fundamentally the value will not be provided by them as they are increasingly positioned to promote their services to customers. More than this, Open Banking means open competition in the financial services industry – and it will be the consumer who benefits most from this. Up until this point, financial service providers have been purposely vague about the true cost of overdrafts, borrowing, FX, etc. Open Banking means that this information can be made very clear via the data in people’s bank accounts.
“We anticipate a host of new providers coming to the fore in the wake of Open Banking. But these will be different to traditional banks, acting more like advisors to people’s financial life (from saving, to investing, to finding the right financial products). Users will still use their current provider to transact, but will manage everything else via these new wave of ‘added value’ providers that are focussed on offering services that make their users better off.
“In future, the value the financial service provider brings to its customer will trump everything else. We think the providers that embrace this transparency to bring this added value to their customers will end up winning the day – and we don’t think these will be the main providers of today.”