- New World Bank survey indicates rapid rise of mobile phones and the internet-69% of adults globally now have an account at a bank or mobile money provider
- Financial planning advice in Australia faces change after miss-selling problems says GlobalData
- Squirro new study indicates AI and ML on the increase in financial services
- Central Bank of Ireland to launch Innovation Hub
- FICO fraud identification solution Falcon Assurance Navigator now available on AWS
- Swedish FinTech Tink launches API platform
- Swedbank expands partnership with Meniga expired
- HSBC takes climate change investment decisions on tar sands projects and some coal-fired power stations expired
- UBS has "excellent start to 2018, with our results once again showing the power of our diversified business" says CEO Ermotti expired
- Wells Fargo faces $1bn penalty expired
- PCF Bank retail deposits top £100m mark expired
- New credit card launched in Indonesia 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.”