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Covid-19 is the accelerator Open Banking needed

Writing for the Financial Services Faculty, Journalist Laura Miller looks at whether Open Banking could prosper during the pandemic.

Open Banking has been, prematurely, branded the revolution that never was. Ostensibly regulation to allow third party providers access to bank customer data, and cut fraud with stronger security protocols, the real promise was consumers’ liberation from the high street giants and access to more, and more competitive, financial services. It’s a long walk to freedom, and we’re not there yet. 

Less than a fifth of consumers were aware of Open Banking when PwC carried out research in 2018, after its implementation via Payment Services Directive 2 (PSD2). “With the fanfare around the directive came an expectation banking would revolutionise overnight. In reality, it’s proved more evolution than revolution,” says Tom Graham, managing director in the banking arm of professional services firm Accenture.