Open University workshop explores implications of Open Banking

In January 2018, the UK will be leading the world by introducing Open Banking, a package of technical and regulatory changes that should make it easy and secure to share personal banking details (including transactions data) with third parties such as account aggregators and comparison websites. It will also enable payments direct from an account without any plastic cards or intermediary services like Paypal.

Transaction data could be used by new apps to help consumers avoid debt, automate saving, shop around for personalised product matches and even automate regular switching. The flip side is that consumers will need to get much better at valuing and protecting their data. Open Banking could change what we mean by financial capability as dramatically as the washing machine changed notions of women’s work many years ago.

A recent Open University workshop brought together academics, consumer representatives, regulators and industry to explore the implications of the introduction of Open Banking.  During its discussions, the group called for more capable use of comparison websites, greater clarity on intermediaries’ hidden fees and a clearer interface between regulators once Open Banking starts.

The presentations and a report of the event are available to view and download (see links below).

The workshop was organised as part of The Open University IKD (Innovation, Knowledge and Development) research centre series: Evidence-Informed Policy and Practice. The series brings together academics and practitioners to exchange knowledge and explore solutions concerning issues of the day.

Jonquil Lowe, Senior Lecturer in Economics and Personal Finance, The Open University