It may dominate industry chatter, but Open Banking has still to enter the public consciousness, with nearly three quarters of Brits unaware of the initiative, according to a YouGov survey.
Of 2074 adults quizzed by YouGov, just 28% are aware of Open Banking, the government-backed initiative that arrived earlier this year, enabling Brits to share their banking data with trusted third parties.
Older people are more in the know than the young, with 39% of those aged over 55 aware of the switch, compared to just 14% of those aged 18 to 24. More affluent respondents are also more likely to be have heard of the term.
Even when YouGov gave survey participants a clear description of Open Banking, 45% could not understand the ways they could use it, against 18% who could.
The survey shows that even if they know what it is, Brits are wary about Open Banking. Over three quarters say they would be concerned about sharing their financial data with companies other than their main bank, whilst just six per cent would not be concerned. Just 12% would be prepared to share their financial data in order to access new and innovative products or services.
Nearly two thirds say that they are satisfied with the service they get from their current bank, suggesting a lack of eagerness to share data with third parties.
With such low levels of understanding about what Open Banking is, Brits are unsure about the impact the service will have; 63% aren’t sure either way about whether it is a positive change that will really benefit consumers - 14% believe it will benefit, against 22% that don’t.
Account aggregation is seen as the most innovative service related to open banking (20% say this), ahead of money management (eight per cent), choosing the right account, account management, and buying things (all on seven per cent).
Matt Palframan, director, financial services research, YouGov, says: "The introduction of open banking was hailed as a revolution for the financial sector, however what we’re actually seeing is more of a slow and silent evolution.
"More needs to be done to allay consumers’ fears about data security whilst financial service providers will also need to ensure that there are real benefits for consumers who are prepared to share their data in this way."