Nearly a year on from PSD2 implementation, UK consumers remain none the wiser over the benefits of sharing their data across the financial ecosystem, according to Roland Fejfar, vice president of fintech at Morgan Stanley, who was speaking at FinTech Connect.
“72% of UK consumers haven’t heard of Open Banking, with 77% unwilling to share their data,” said Fejfar, citing YouGov statistics, “ultimately, Open Banking is about trust and education.”
Consumer reluctance around Open Banking could stem from a string of high profile data breaches and a renewed interest in identity protection following GDPR, said moderator Mark Beresford, director at Edgar Dunn & Company.
“Customers still trust banks with their data more than new market players,” said Raghava Krishna, head of product management at Lloyd’s Banking Group who was sitting on the same panel. “In my mind, Open Banking still needs more done to it.”
For Jon Roughley, director of innovation at Experian, companies should begin treating consent as “a customer experience challenge”, suggesting that transparency and devolving control to the customer would improve experiences.
On the subject of transparency and consent within the Open Banking ecosystem, Mark Curran, director of payments and open banking at CYBG, said there are still challenges around what constant consent means, and how permission is obtained.
“How do you prove constant consent?” asked Curran. “How does a bank prove that the customer gave permission on that day, to that value added dataset that had algorithms run through it and accessed by third parties? Moreover, how does the third party prove it had the customer’s particular permission? I don’t think too many third parties would be able to prove that.”