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Open banking is here, bringing more products together on a single platform
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Financial services will be more accessible to customers and there will be increased competition
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Customers will be able to choose which platform they access their accounts
Open banking has arrived. It paves the way for other financial institutions and technology companies to have access to your financial information, including your spending habits, (once you have expressly given permission). They will use this to tailor financial products and services for you. Eventually, when you access your bank’s online platform, you will be able to bolt onto your account various services from other providers, such as a money transfer provider or an insurance policy. You will also be able to choose which platform you want to access this information from.
Customers who use digital banking services will benefit from access to other services such as links to credit scoring, to see what financial service products are available to them. Loyalty and reward products are also on the horizon, such as price comparison services, which will allow customers to claim the difference on products already purchased.
It will also make it easier to see which areas they can make savings. Many customers are unaware that sending money abroad through their bank is the most expensive way to do so.
In reality, the bank offers a rate that is at best 4% higher than the interbank exchange rate (the level at which banks exchange money). Banks often charge transaction fees from £5 to £30 per transaction. Many currency exchange providers offer a rate that is 0.5% to 1.5% over the interbank rate and customers may even be able to beat the banks lending rate on the peer matching platforms. Take a look at our comparison tool to find the most cost effective money transfer providers globally.
