Just how smart is open banking?

82 percent of polled consumers use open banking, yet more than 40 percent say it's "dangerous" - what's going on?

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Open banking underpins the FinTech revolution. It's the foundation of a fast-growing sector of technology providing financial and payment services to millions of people around the world. It's supported by strict and comprehensive regulations in the EU and the UK, ensuring that banks and third party providers can share transaction data and make authorised payments securely and only with the permission of the customer. It's safe and flexible... and yet it's deeply distrusted by many banking consumers.

Part of the reason for this distrust is that when it comes to money - especially their own money – account holders are justifiably conservative. We all know what happens when banking gets a little too carefree: the Great Financial Crash of 2007/8 bears testament to that, its repercussions still reverberating through society today. Nobody wants banks playing fast and loose with customers' money.

Open banking emphatically does not play fast and loose with anyone's money. Its online payment mechanisms are almost certainly more secure than credit card transactions, for example, and the scope for fraud is tiny. However, perception doesn't always match reality.

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