Open Banking

What is open banking?  What open banking applications exist?  How can open banking benefit lenders?  Does open banking have an RoI?  

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This Month’s Article

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Vulnerability – How Effective Are Digital Customer Journeys?

What we learned from the FCA Sandbox.  Read our latest article today…

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PrinSIX Articles on Open Banking

Latest Roundup of Industry News on Open Banking

Please note: The insights provided in this section are commonly republished from third-party sources. Articles are the exclusive opinions of the authors. PrinSIX Technologies Ltd accepts no liability for their accuracy or for any consequential impacts of any actions resulting from the use of this information.

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Our Analysis

Open banking delivers rich new insight but with classic digital challenges 

Well categorised open banking data provides an exciting new layer of insight for lenders to assess customers for both vulnerability and commercial risk.

It supports responsible lending decisions that can be clearly evidenced for regulatory scrutiny. However, two challenges need to be overcome, its potential impact on conversion and how to test.

Challenge #1

After 20 years of being told “never share your banking details online”, lenders who mandate Open banking today will see a significant impact on conversion.  Acquisition costs will rise, and customer numbers decline. 

Challenge #2

There is no historic data available to build strategies against.  Lenders must learn in live.  That requires continuous testing, quickly implemented, interpreted, learnt from and improved. 

How PrinSIX can help

Onboarding today is inadequate to manage these two challenges.  PrinSIX’s platform equips organisations to create dynamic, personalised, agile journeys – one applicant at a time.  

Facts about Open Banking

1. 94% of FinTechs are considering how open banking can enhance their current service. (Openbanking)
2. Open banking could boost UK GDP by £1 billion annually. (Openbanking)
3. 8 out of 10 financial firms are adopting or planning to adopt Open Banking, or are interested in doing so. (Openbanking)
4. 72% of the UK adult population will bank via a phone app by 2023. (Openbanking)

5. the open banking market is growing at 24.4%, reaching $43.15 billion by 2026 and accelerating by the pandemic but part of an inevitable control shift in the financial sector. (Forbes)

6. Online banking adoption rate in the UK is growing year on year, reaching 76% of the population in 2020. (Statista)

7. More than 2.5 million UK consumers and businesses now use open bankingenabled products to manage their finances, access credit and make payments. (Openbanking)

8. Since 2019, the number of thirdparty providers (businesses who use open banking technology) in the ecosystem has grown to 294. (Openbanking)

9. There are 202 FCAregulated providers enrolled in Open Banking as of January 2020. (Nordigen

10. The Open Banking market by 2022 could be generating£7.2 billion. (Teknospire)

11. In June, there have been 1.2 million uses of open banking API’s, up from 720,000 in May(2018). (Teknospire)

About PrinSIX Technologies

PrinSIX add customers

We make innovation work for businesses around the world.

PrinSIX offers a services-led digital platform that uses real-time analytical learning ‘at the speed of digital’ to orchestrate unique customer onboarding journeys, one decision stage at a time.  PrinSIX meets the needs of lenders, regulators and customers fully and simultaneously; equipping lenders to maximize customer experience and lending while minimizing cost and risk; with a major concern being regulatory compliance—an existential threat.  

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