What are the implications of Open Banking select all that apply?

22 Apr 2022 By PAYCEC

Is it necessary for people to be concerned about their bank accounts being 'open'?

Consumer trust in the banking industry has been significantly degraded, and banks are currently battling to recover.It doesn't mean people don't trust banks with their money (there aren't many options unless you invest or store cash under your mattress), but consumers are distrustful of banks on almost every other level. This is a major issue for the banks.

• Millennials (for lack of a better term) account for more than a quarter of the population in Europe and the Americas, and they are on track to accumulate large wealth through personal earnings and inheritance.
• Many are digital natives who place significantly more trust in technology brands than in banks.
• While this may change in the age of Facebook and Cambridge Analytica, failing to rehabilitate a tarnished reputation is not a viable strategy.
• Banks, like any other organization, must - and can - gain the trust of their consumers.
• Challenger banks, which were unaffected by the financial crisis a decade ago, are seizing the opportunity to woo millennial consumers by combining their "clean" reputation with the use of current technology.