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14th February 2020
Revolut announces the launch of open banking for all UK retail and business customers
Revolut has announced the launch of open banking for all UK retail and business customers.
The move has huge implications for the economy, potentially making consumers more bank agnostic, opening the door for other industries to follow suit and even making the banking sector less secure.
Rich Mathias, Senior Technology Architect at LiveArea comments The financial services sector has traditional been slow to innovate, and Revolut has yet again stolen a march on the competition. The announcement is momentous for not just personal finance, but the economy for a whole.
Revolut is the first provider to be authorised as an Account Information Service(AISP) to securely use UK bank APIs (Application System Preference). In layman’s terms, they can now act as a single, unified interface for all of an individual’s or business’s financial information–a single app through which you can access everything banking related.
The implications cannot be overestimated. The pain of managing multiple accounts across different banks, account types and locations, is effectively eliminated. One-in-four UK consumers are now in possession of more than one current account–this trend could well explode with open banking effectively encouraging consumers to be more agnostic with credit cards and saving accounts. It could spell the end of bank loyalty.
Secondly, If the system of open applications works effectively, it will theoretically open the door for other sectors to follow suit. In the retail industry, for example, we could see the emergence of a single refund/credit company, delivery, or inventory buying app looking after the entire market. Much like Revolut, digitally native, and by nature flexible, challenger brands are best placed to take advantage.
While the announcement could be a kingmaker, it has its risks for Revolut. What would happen if they were to suffer a data breach? The banking industry typically leads the way for security, but a huge amount of responsibility falls squarely on the company’s shoulders. Any stumble or misstep could undermine their reputation and halt open banking in its tracts.
Ultimately, the move by Revolut should be seen as a must win gamble for the UK banking and retail sectors. It’s safe to say, all eyes are on them, eagerly awaiting the project’s success or failure.”