Open Banking could help the UK consumers and SMEs unlock £18bn a year, according to a new report supported by international growth strategy experts Manifesto Growth Architects.
The report, authored by Open Banking Implementation Entity’s independent consumer representative Faith Reynolds and SME representative Mark Chidley and sponsored by Manifesto Growth Architects, outlines how consumers could unlock up to £12bn from the competitive financial market that Open Banking brings, with savings of up to £287 per year through better overdraft rates, personal finance management options and balance transfer support.
The UK is already leading the way in Open Banking, which sees authorised providers develop more efficient ways of sharing financial data to increase competition and improve products to help consumers and businesses manage their money. Benefits include more tailored borrowing options for consumers and reducing late payments for businesses, ultimately increasing productivity and efficiency. Manifesto Growth Architects specialises in developing growth strategies for international clients such as EDF, Disney and News Corp, as well as a wealth of financial services organisations. The company is calling for retail banks to move from ‘comply to compete’ on Open Banking, in order to unlock this potential value for both customers and SMEs through these more tailored products and services.
Mark Davison, financial services partner at Manifesto Growth Architects, said: “We’re seeing Open Banking starting to accelerate but the potential value for both consumers and SMEs is much greater. This timely report should help a wide range of stakeholders understand these potential benefits and focus on delivering against them”
Author Faith Reynolds added: “End-users are desperate for services which make their lives easier and happier. Open Banking offers a golden opportunity to reimagine people's relationship with financial services. From budgeting to investing, we need products that shape themselves to our lifestyles and priorities better”