Australian proponents of Open Banking who eagerly watched the UK launch earlier this year are likely to be feeling somewhat disappointed. Rather than setting the world of finance on fire, the concept has been met with a collective shrug.
Under the Open Banking rules that came into force in January, large UK banks are required to make customer data available to third-party financial service providers. The logic is that opening up data in this way will stimulate competition and lead to the development of a host of new products and services.
So, this begs the question: if consumers stand to enjoy some significant benefits, why has the reaction to the concept been so lacklustre? One explanation is that most remain unsure about what will happen to their data and what protection measures might be in place.