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UK banks develop positive attitude toward open banking adoption

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An international study found that many believe the technology to be important to their businesses in the post-pandemic recovery

UK banks are demonstrating a positive attitude toward open banking in 2020 compared to last year. It is reported that 73 percent of UK banks are more positive toward open banking which could lead up to greater opportunities with fintechs. That said, only 49 percent of financial institutions were positive about the open banking system last year. This points to a 25 percent increase in a year.

An international study on senior professionals from banks, lenders, retailers and personal finance management tools found that open banking technology might be important to their businesses in the post-pandemic recovery. The study was published by a leading open banking provider Yolt Technology Services. 

Leon Muis, Chief Business Officer at Yolt Technology Services, said in a report, “Many businesses already understand the potential of open banking and use it to great effect, yet a significant portion still hold misconceptions about the technology, with many unclear on the requirement for customer consent. It is this knowledge gap that is the biggest barrier to truly widespread adoption. Advocates of open technology must highlight that regulation aims to provide consumers and businesses with more control over their financial information, not less, while demonstrating the value it can bring to everyone involved in the transaction process.”

The research showed that 48 percent of respondents believe Covid-19 has not disrupted their open banking adoption plans while 12 percent of them are inclined to adopt the technology due to the pandemic.

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