Open Banking could be worth £7.2bn by 2022, report shows

A report from Big Four accountancy firm PwC has predicted that the Open Banking sector could be worth £2.8bn by the end of the year and £7.2bn by 2022.

The report, entitled “How to Seize the Open Banking Opportunity”, highlighted the challenges of getting businesses to make use of the initiative, which involves banks sharing customer data with third-party firms.

Awareness

The report showed that more needs to be done to raise awareness of Open Banking, with a lack of press coverage and marketing from banks being among the top reasons why some firms are unaware of the initiative.

SMEs were shown to be more aware of the effects of Open Banking than retail customers and are also willing to make use of the data-sharing scheme, with 40% saying that they would share their financial transaction information.

When it comes to what information individuals would be willing to share, just 10% cited transaction history, while 12% said that they would share information about their financial products.

Banks were also found to still be popular with businesses, with 72% favouring them over fintech companies and peer-to-peer lending firms. This was also found to be the case for 65% of individuals.

Game-changer

PwC’s report highlighted the benefits of Open Banking, with the accountancy firm predicting that the initiative will help to create better tools for comparing products and better services that enable customers to switch products.

Commenting on Open Banking, PwC’s Financial Services Payments Leader Jonathan Turner said that the scheme is a potential game-changer for individual and corporate consumers.

Turner went on to say: “It provides an opportunity to transform the public’s interaction and everyday experience with the financial services industry. But there are still many ‘hard yards’ to travel. Few disruptive propositions have been developed so far.”