The news: Banks and third-party financial-services providers can revamp how they manage consumers’ consent for sharing the data needed to underpin open banking, per a new PYMNTS report that outlines an international landscape.
How we got here: The report delves into consumers’ uneasiness about data sharing, citing other companies’ recent studies of consumers in various countries:
The wariness has persisted, even as regulators in some geographies are looking to make open banking more convenient:
Suggested solutions: In response, PYMNTS outlines various steps that banks and third-party providers can take to improve how they approach users’ consent for data sharing:
The big takeaway: Open banking’s growth will be stymied unless consumers feel empowered to handle their financial data and trust that it will be handled appropriately by companies. Improving consent handling will help them leap over this hurdle.
Changes to consent processes are also necessary for these companies to build trust with their consumers. Trust is important for getting more people to use open banking. For example, a recent US survey by PYMNTS and MX showed that more than one-quarter of respondents cited trust in their financial institutions for protecting financial assets as their reason for being comfortable with sharing their data, and 16% cited trust in third-party providers that they connect to.
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