Open Banking Platforms Still Have Work to Do to Convince Public of Security
Despite the potential for faster and more efficient online banking, many people still have concerns over the security of Open Banking platforms. According to a recent survey by I-Finity, a digital solutions company, only 1 in 5 people feel that this form of online transaction is secure.
Open Banking is a method of securely sharing financial information between different banks, financial institutions, and third-party providers, with the goal of creating a more streamlined and convenient banking experience for consumers. However, the survey results suggest that more education is needed to convince the public of its safety.
The survey, which included 200 people who have used or currently use banking apps, revealed that only 46% of people are aware of Open Banking. Additionally, 36% of people would be hesitant to give personal data to an Open Banking app or platform, while 47% were unsure and only 18% were certain they would be comfortable doing so.
Furthermore, the survey found that the biggest concern around Open Banking is the potential for bank details to be stolen, with 20% of respondents selecting this option. 18% also expressed concerns about the site being a scam or phishing site.
While the survey results highlight some reluctance towards Open Banking, they also suggest that education could play a crucial role in increasing public trust and adoption of this technology. Russ Huntington, CTO of I-Finity, explains that the concerns around Open Banking are often unfounded and that it is actually more secure than traditional banking methods.
He states, “With Open Banking, you need to use secure data-sharing practices, such as using APIs and encryption, to ensure that customer data is protected. Additionally, the connection between apps and Open Banking is encrypted, providing an extra layer of security.”
Huntington also emphasizes that Open Banking is highly regulated by the Financial Conduct Authority (FCA), ensuring that all third-party providers adhere to strict standards and undergo regular audits. This helps to maintain the security and integrity of the platform.
I-Finity, as a vetted and approved third-party provider of Open Banking solutions, has experience in securely connecting financial services customers with UK banks and providing ongoing support to ensure compliance with FCA regulations. They also emphasize the importance of educating the public about the safety and benefits of Open Banking.
As Open Banking continues to gain traction in the financial industry, it is crucial for the public to have a better understanding of its security and potential. With the right education and regulations in place, Open Banking has the potential to revolutionize the way we handle our finances.
Derick is an experienced reporter having held multiple senior roles for large publishers across Europe. Specialist subjects include small business and financial emerging markets.