Open bank­ing ready for busi­ness

The Courier & Advertiser (Fife Edition) - - NEWS -

A bank­ing rev­o­lu­tion starts to­day which aims to give peo­ple more con­trol to make bet­ter de­ci­sions with their money.

Open bank­ing is be­ing launched fol­low­ing a probe by the Com­pe­ti­tion and Mar­kets Author­ity (CMA), which found many bank­ing cus­tomers are pay­ing more than they should and are not ben­e­fit­ing from new ser­vices.

Un­der the ini­tia­tive, peo­ple will be able to give com­pa­nies other than their bank or build­ing so­ci­ety per­mis­sion to se­curely ac­cess their ac­counts.

The idea is that do­ing this should make it eas­ier for peo­ple to com­pare prod­ucts, based on their own needs, which could in turn shake up com­pe­ti­tion and en­cour­age firms to up their game.

It will take some time for the full ef­fects of open bank­ing to be seen.

Im­ran Gu­lamhu­sein­wala, trustee of open bank­ing, said: “It is dif­fi­cult to over­state just how rev­o­lu­tion­ary open bank­ing could, and should, be.

“New prod­ucts will emerge from in­cum­bents and en­tirely new en­trants will join the mar­ket.

“New ways of man­ag­ing money, of mak­ing life-chang­ing fi­nan­cial de­ci­sions, of pay­ing for things, will ap­pear.”

Nine banks or build­ing so­ci­eties are ini­tially tak­ing part in open bank­ing.

Th­ese are Bar­clays, Lloyds Bank­ing Group, San­tander, Danske, HSBC, RBS, Bank of Ire­land, Na­tion­wide and Al­lied Ir­ish Bank.

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