Open Banking: 30% of investors trust Big Tech with their cash and data

By Daniel Lanyon on 2nd March 2018

Challenger Banks

A survey demonstrates Apple, Google, Facebook et al may yet eat fintechs’ lunch.

Open Banking: 30% of investors trust Big Tech with their cash and data

A survey demonstrates Apple, Google, Facebook et al may yet eat fintechs’ lunch.

Just under a third of UK adults (30 per cent) would be happy to sign over access to their financial data to trusted tech companies such as Apple, Google or third-party apps using such platforms, a study has revealed.

The survey of 1000 UK adults conducted by the Prepaid International Forum (PIF), a trade body, has been revealed following the start of Open Banking in the UK.

Open Banking allows banking customers to prompt their banks to share financial data to regulated third parties. The data doesn’t reveal account passwords or access codes. It allows third parties to analyse spending habits and help find better deals. 

The study shows that many people, especially younger consumers, are happy to give such permissions in order to gain financial benefits or better insights over how they manage their money. As many as 34 per cent of those aged 18-24 would be happy to provide permission to a company, such as Apple, with slightly fewer (30 per cent) saying that they would also trust Google with this data. 

Among older customers just under a quarter (24 per cent) of those aged 65 or older said they would provide Apple with permission. 

Alastair Graham, spokesperson for PIF, says the research shows that people are now willing to consider using open banking.

“Mobile devices already offer many payment services, often using the prepaid platform to facilitate simple and secure transactions.  To many people, adding open banking feels like a small step.”

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