- Financial services businesses in the UK and Netherlands call for better education, training and increased assistance with data security issues to propel adoption
- Study of 800 senior professionals from banks, lenders, personal finance management tools (PFMs) and retailers, in the UK and Netherlands
42% of financial services businesses want better support and assistance with data security in relation to open banking, according to the latest research by open banking provider YTS.
The survey of monetary professionals including banks, lenders and retailers, revealed businesses want better education and training, alongside increased guidance, to help reduce fears around the security risks of open banking adoption. Respondents also stated they wanted this support to come primarily from regulators.
This ranked higher than taking a 'wait and see' approach by allowing more time for open banking technology to build up (39%), which has often been cited as a way to assuage data security concerns, but because YTS' data demonstrates, won't solve the problems businesses are facing.
Lack of customer and business willingness to accept risks around data security were the second and third most cited factors threatening the progress of widespread open banking adoption, on 27% and 25% respectively. Over a third of respondents (35%) also believe that an 'unfriendly' regulatory environment is threatening the progress of widespread open banking adoption.
YTS is calling for the entire open banking and financial services industry to do more to empower businesses to adopt open banking technology, developing a more nurturing environment for the technology to thrive. This can primarily be achieved by introducing better education and accessible, transparent support for businesses seeking to adopt the technology. This should be the spearhead of an industry-wide effort to banish myths and make more solid foundations for growth.
Roderick Simons, Chief Technology Officer at Yolt Technology Services comments:
\”To fully maximise open banking's potential, we should all do more to teach businesses and consumers about its security foundation . Open banking means their financial information is more protected than ever, using the individual in charge of whether their information is shared or not and secure APIs preventing risks from unwanted third-party access. You want to work with regulators, financial services institutions, and businesses themselves to lead the way in educating, training, and supporting businesses to beat misperceptions of open banking. Doing so will unleash the power of open banking and create huge opportunities for both consumers and businesses.
\”Once there's widespread adoption and trust in open banking technology, stakeholders over the open banking ecosystem may then turn their attentions to creating an open finance framework that provides consumers the ability to access all of their financial footprint in one place.\”