News & Views - Savantor
You are here:
/
/
/

Open Banking

Friday, 16 February 2018

On 13th January, the same day as the implementation of PSD2, the Open Banking initiative was launched in the UK. A month after its introduction, what has been the impact of the introduction of this significant change to UK banking practices?

Briefly, legislation has been implemented in the UK which mandates that banks and building societies must allow regulated businesses access, using API technology, to a customer's financial data, if that customer has given their permission. The objective is that individuals can allow apps and online services to analyse their spending and find better deals on anything from financial products such as loans and mortgages to other items such as shopping and broadband.

Initially not all of the nine Banks mandated to offer it were fully ready for the launch date and a number of revised dates were agreed for several of the Banks including Nationwide, Barclays, HSBC, RBS, Bank of Ireland and Santander.

There have, however, been several new Open Banking initiatives already launched: Yolt, the smart money management app owned by ING, became the first third party provider to complete a successful connection under the new Open Banking system (with Lloyds Bank). Openwrks, another money management app, was the first third party provider to connect to all banks currently providing functional APIs. Zopa, an online personal finance peer-to-peer lending company, is partnering with TrueLayer to enable consumers to verify their income using Open Banking, without having to upload documents.

Whilst the topic has received a significant amount of attention in the media – “Open Banking revolution”, “a fundamental change” - what is not yet clear and unlikely to be so for some time is how it is regarded by consumers and the rate of take-up for it. Certainly the consumer can benefit from the advantages it offers, yet there is also the question of security and whether the new freedoms are either fully secure or could be subject to fraudulent practices.

Whilst the Open Banking website states that Open Banking is safe and secure and that customers’ data is encrypted and shared securely, and will only be shared if a customer gives their consent, nevertheless concerns about the issue of security have been raised by consumer organisations and websites such as Which? and MoneySavingExpert.com.

After all, it was only at the beginning of December that it was revealed that a number of supposedly secure banking apps were actually vulnerable to hacking and could allow fraudsters to retrieve, user names, password and PIN codes. It will therefore be unsurprising if it takes time for consumers to gain confidence in the new initiative. Recent research by consultants Accenture apparently found that 85% of those asked said the fear of fraud would put them off sharing data, and 69% said they would not share financial data with businesses that were not banks.

Whether Open Banking is a success or not must depend to a great extent upon whether or not it is adopted by consumers. Initially this is likely to be slow, but market analysts and regulators expect consumer behaviour to change steadily over time. By the end of 2018 it will be interesting to see how willing consumers have been to adopt and make use of the new functionality.

Savantor Services

Savantor Services

Savantor services are tailored to Client needs based on our core service areas

Specialist Resourcing Payments Strategy Platform Transition Operational Efficiency
Savantor Services

Job Opportunities

Consulting and contracting roles in the payments, mobile and banking arena within the UK and across Europe

View more
Savantor Services

Savantor Views

Find out more from our Savantor brochures, MarketEye back copies and Industry opinion

Collateral Market Eye News & Views Sign Up to receive MarketEye

Client Quotes

New Payments Initiative

"In moving our new initiative into reality, we required specialist payments knowledge and forward thinking in the retail sector. Savantor supplied this and provided very effective guidance throughout. We enjoyed working with them."

Sophie High, Head of Innovation Delivery - Cancer Research UK

Credit Card Launch

"Savantor's knowledge and experience were the key differentiators in selecting them and they contributed greatly to the success of the product launch and the effectiveness of the ongoing operational service."

Toine Schepers, Operations Director - Primeline - The Netherlands

Acquirer Risk Assessment

"The expertise provided by Savantor has greatly helped us evaluate our risk position and to take the right steps in managing our future risks. Strong, disciplined planning and an ongoing willingness to work closely with our staff played an enormous part in making this a very successful well-delivered project which will greatly help us in achieving our business goals."

Mark Healy, Chief Risk Officer - NEOVIA Financial - UK

Payments Platform Strategy and Sourcing

"We were in urgent need of external independent expertise to supplement our internal resources. Senior consultants had to quickly integrate with our team and actively contribute. Their experts quickly forged strong working relationships and delivered to our brief. We enjoyed working with them to develop our future platform strategy."

Evert R Fekkes, SVP - Payment & Savings Services - Rabobank Nederland

Acquirer Strategy and Operating Model

"Savantor brought an effective blend of European acquirer market expertise and transaction processing solution design. Their experts quickly forged strong working relationships with our team. We enjoyed working with them to create our future acquirer strategy."

Mikko Hyttinen, SVP - Lending Services - OP-Pohjola Group - Finland

Credit Risk Review for New Product Launch

"We needed expert help at short notice and Savantor were very impressive in their response and knowledge. The results were very clear and useful, enabling us to quickly make good progress on the next steps."

Sami Karhunen, Head of Business Intelligence and SME Sales - Point Transaction Systems Oy - Finland

Payments Workshop Material

"Savantor helped ACI build a payments onboarding workshop for new technical staff in ACI EMEA. Their extensive experience took our outline and built a great starting presentation of industry facts that we have now customised further into a half day session that is used for all new joiners. Our Americas and APAC regions have also taken the material and customised it for their regions. A great job by Savantor has meant new joiners to ACI hit the ground running."

Richard Sanders, Principal Solution Consultant - ACI - Worldwide EMEA

Platform Selection & RFP Management

"OP-Pohjola Group has used Savantor in both acquiring and issuing for platform/service provider research, RFI/RFP processes and subsequent contract negotiations. Savantor's approach and commitment have always been very professional and transparent. They have been of great help for the company in providing us important insights and background information beyond vendors sales speeches."

Kai Lindstrom, Head of Acquiring - OP-Services Ltd - Finland

Clients - Request Support

Send us a support request and one of our specialists will be in contact to assist you.

Consultants – Upload your CV

Register your CV with us and gain access to a range of job opportunities through our online job search portal.