RFi Group: First ever report on consumer reactions to Open Banking reveals what UK consumers REALLY think!

LONDON, DECEMBER 2018: RFi Group has conducted the first ever study on consumer reactions to Open Banking and the rollout of PSD2 across the UK, releasing a one-of-a-kind report on its key findings. 
 
Widely heralded to produce a wave of disruption not seen in banking for decades, Open Banking will allow consumers to share their information with any provider, causing an upsurge of competition from new players who have the smarts to take advantage of this opportunity. 
 
The UK is leading the charge, as other markets watch closely. 
 
RFi Group interviewed 2,000 consumers and 200 small-to-medium sized businesses (SME’s) and combined factual results with their expert insight to provide company-wide (bank/ fintech) strategies, to both protect and acquire customers. 
 
The study’s aims were;  
 
• To debunk and expel the myths and exaggerations around PSD2 and Open Banking • To strip out the fintech hype and take the view that ‘the customer is king’ - What is their view? • To understand the opportunity this provides for banks, challengers and fintech’s • To provide data-driven insights for RFi Group’s clients, to make decisions based on facts 
 
Initial Findings; 
 
• Only 16% of consumers had previously heard of Open Banking • Just 18% of consumers were aware it had been introduced  • Fewer than one in four (24%) claimed to have a good level of understanding of the terminology and what it means for them 
 
Other major take-outs;  
 
• 1 in 6 consumers are happy sharing their personal data for improved products or services and 3 in 5 are open to understanding the benefits 
 
• Banks are still the most trusted institutions to keep customer data safe, but for the first-time ever, younger consumers now trust Amazon and PayPal more than they trust their banks and schemes 
 
• Trust, brand presence and longevity in financial services provide comfort and are factors that continue to be hurdles for the FinTech community 
 
• FinTech awareness and usage is increasing but no FinTech in the UK has more than 3% share and less than 0.5% of UK consumers are currently using a FinTech as their main bank 
 
• How consumers will behave in an Open Banking environment will be heavily influenced by who they trust and what they perceive to be secure, (and the inverse - who they don’t trust and what they perceive to be insecure) 
 
• Consumers don’t find their every-day banking relationships challenging, so ultimately the opportunity is to offer entirely new propositions 
 
• Services that enable consumers to avoid or reduce fees tested well, highlighting that services need to focus on consumer pain points (of which fees is one). 1 in 3 consumers find aggregation services appealing 
 
• UK consumers do not know how much of their personal data they are already sharing. 3 in 10 believe that they do so via apps, but 7 in 10 consumers use apps that require the sharing of some sort of personal data 
 
The Report will enable readers to;  
 
• Develop a company-wide (bank/ fintech) strategy to both protect and acquire customers 
 
• Understand consumer pain points and how to solve them 
 
• Learn how to overcome barriers to entry and develop loyalty 
 
• Reveal how to own the ecosystem to acquire main bank customers 
 
~ ENDS ~ 
 
Media enquiries: Chloé James  Group Media Director RFi Group cjames@rfigroup.com  +1 437 221 4905 
 
About RFi Group RFi Group is a global data-driven strategic insights provider, focusing exclusively on financial services. It specialises in data and information gathering, customer-based insight generation and business decision support for the world’s leading financial service providers. Its aim is to combine global intelligence and local knowledge to provide insightful, valuable and actionable recommendations, with a core focus on the provision of exceptional client service. 
 
About RFi Group’s ‘Global Digital Banker’ weekly Podcast In line with their global research expertise, RFi Group host an official weekly podcast, the Global Digital Banker, focusing on key trends, market insights and thought leadership, the podcast providing deep and detailed insight into the dynamic world of digital banking.  A useful source of the most up-to-date research and news, such as the information provided above. 

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