Press release

10 January 2019

Royal London comments on the one-year anniversary of Open Banking

3 min read

 
Royal London logo

Becky O'Connor

Personal Finance Specialist

Share

  • Linkedin

Commenting on the one-year anniversary of “Open Banking”, which falls on Sunday January 13, Becky O’Connor, personal finance specialist at Royal London, says:

Commenting on the one-year anniversary of “Open Banking”, which falls on Sunday January 13, Becky O’Connor, personal finance specialist at Royal London, says:

“Awareness of Open Banking is still relatively low one year on, but in a way, people don’t really need to know the term. What matters more is that as more people sign up to services that have adopted Open Banking, they actually see some financial benefit – and their data is not misused.

“The promises that the Open Banking pioneers have made are easier budgeting, better deals and more control. If these translate into clear pounds and pence gains for most people, if trust is maintained and data is respected – we can expect mass adoption of things like budgeting apps, digital money assistants and dashboards. These give a holistic view of everything including your savings, insurance and credit cards, send handy notifications and do some money admin automatically on your behalf.

“At the moment, what we have is a lot of competing apps that to the average user, do roughly the same thing, which is to track and categorise spending, to add savings goals and to let you see if you are on course to achieve them. Many providers are not on board. The industry is still finding its feet, working out how to be most useful to banking customers and there are kinks to iron out in the proposition.

“For instance, it is not clear whether offering people the convenience of selecting the best deals on their behalf is really more beneficial over the long term than a traditional price comparison site, which allows consumers to see more of the market and to choose for themselves, arguably giving more confidence that you are getting the best deal.

“The Open Banking providers need to gain people’s trust and demonstrate that they are motivated by the genuine desire for positive change for consumers, not just the marketing benefits to the industry.

“If the Open Banking initiative stays true to its values of transparency and better deals – in terms of customer service as well as price – and does not focus solely on convenience and user experience, then it could genuinely transform the way people interact with their finances, helping people stay out of debt, better manage their disposable income and meet long-term goals.”

- ENDS -

For further information please contact:

Becky O’Connor, Personal Finance Specialist

About Royal London:

Royal London is the largest mutual life, pensions and investment company in the UK, with funds under management of £117 billion, 8.8 million policies in force and 3,745 employees. Figures quoted are as at 30 June 2018.