Open banking consumer awareness remains low in the UK more than a year on from its launch.
Two thirds of UK consumers state that they had never heard of the Open Banking initiative. Moreover, while one in five consumers have heard of it they cannot confidently explain what it is.
According to research commissioned by digital banking software suppliers CREALOGIX, less than 8% believe open banking is a good idea.
Common concerns focus on security and privacy risks created or increased by open banking. Specifically, one third of consumers believe that malicious attackers may use open banking technology to breach privacy or commit fraud.
On the other hand, consumers are keener on open banking in practice, if not in name.
Open banking consumer awareness low, consumers keener in practice
UK consumers’ negative view of open banking is not consistent across age groups. Gen-Zs and millennials are three times more likely to think of open banking as a good idea.
More than two thirds of consumers are interested in mobile and digital banking features directly associated with open banking.
While there is work to do to raise open banking consumer awareness, features which UK consumers consider most useful-sounding include:
- Instant transfer of money between different bank accounts, credit, and savings accounts (33%)
- See all different bank account and credit card balances live in one dashboard (28%), and
- Dashboard showing regular monthly expenses and automatically saves spare money into savings or investments (22%).
Anton Zdziebczok, head of product strategy, CREALOGIX UK, says: “This research highlights what sounds like a contradiction from consumers.
“While they are unaware and to some extent fearful they are keen to get convenient and powerful new features. Of course, this is not a contradiction at all. As with any technology, consumers are not particularly interested in what it’s called or how it works. They care about how it can make their lives better.”