- FCA outlines the measures it will take to protect consumers and sets out when and how the organisation takes action
- OnDot/YouGov survey indicates that UK adults are ready for real-time interaction with their banks
- FSB publishes report to G20 Finance Ministers and Central Bank Governors on its work with standard-setting bodies on Crypto-assets
- Cryptocurrencies now “undeniably part of mainstream finance” says deVere Group CEO Green
- Goldman Sachs announces Blankfein retirement-Solomon to succeed as Chairman and CEO
- BlackFin largest independent FinTech fund in Europe after completing a E180m final closing
- Fenergo Client Lifecycle Management solutions selected for The FinTech50 2018. expired
- UK FinTech PayBreak secures additional £15m of funding with specialist banking group Paragon expired
- Danske Bank announces first half result and updates on Estonia investigation expired
- Moneysupermarket on track for first six months-introduces new mortgage FinTech Podium expired
- Arbuthnot reports strong first half expired
- Goldman Sachs post strongest first half return in nine years 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.”