Open banking - will it work for the consumer?

michaels

http://www.bbc.co.uk/news/business-42553047

So basically open banking means that your banking history at the transaction level belongs to you and you can 'choose' to share it with other financial companies.

Why would you choose to share this info? I guess the banks will offer bespoke deals a bit like having a 'black box' in your car lets the insurance company know exactly how you drive.

What are the potential problems - I can see two:
1) Cherry picking - the best risks will be even easier to spot and will get the best deal, any slight financial mistakes will also be obvious and will be used by the banks to offer worse deals.
2) Whilst it will be the consumers' info and thus they can in theory choose whether to share it, in reality banks will just refuse to deal with those who don't share or offer them inferior deals - thus in reality no choice.

agrinnall

Just some of the previous threads on open banking.

https://forums.moneysavingexpert.com/discussion/5725128

https://forums.moneysavingexpert.com/discussion/5750903

https://forums.moneysavingexpert.com/discussion/5746053

https://forums.moneysavingexpert.com/discussion/5739721

I leave it to others to comment on whether yet another thread is needed.

michaels

agrinnall wrote: »

Just some of the previous threads on open banking.

https://forums.moneysavingexpert.com/discussion/5725128

https://forums.moneysavingexpert.com/discussion/5750903

https://forums.moneysavingexpert.com/discussion/5746053

https://forums.moneysavingexpert.com/discussion/5739721

I leave it to others to comment on whether yet another thread is needed.

Apologies, I went to the banking forum, I typed 'open banking' into the search box, looked at the first page of results, didn't see any discussion and so started a thread. I will try and close it.