Callcredit Blog

Open Banking – give me one good reason…

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In the third in a series investigating the future of digitisation in financial services, Callcredit’s David Firth looks at how giving customers a reason to say yes to data consent will be key to the success of Open Banking.

Some of my colleagues have voiced concern over my recent continued references to Kevin Costner when talking about Open Banking. True, I’m probably not target demographic for a lot of his movies and, yes, perhaps he’s become a bit of a cliché but – and this is the nub – he gives us a reason to watch his performances.

As we explored earlier, when it comes to Open Banking a “build it and they will come” approach isn’t good enough. As Kevin knows, putting in a good technical performance won’t cut it – we have to give the audience a reason to turn up and in Open Banking that means a reason to consent.

We have to give them a reason to say yes to data consent.

A lot of attention is being focused around Open Banking being used for customer acquisition and set up. Sure, if we can make it easier for consumers to come on board, to make the application process hassle-free, that gives customers a reason to say yes to data consent.

But focusing solely on customer acquisition is a little like looking Kevin’s acting and ignoring his skills as a director, a producer and a singer – compelling in isolation but only one strand of what Open Banking can achieve.

For Open Banking to become the rounded package, it needs to be used to full effect. If we can make it easier for brands to put appropriate products & services in front of suitable customers at exactly the right time for them (not us), that gives customers a reason to say yes to data consent.

If we can use customers’ data to protect them or help them game or gamble responsibly, that gives customers a reason to say yes to data consent.

If we can open up credit or banking products to customers who might otherwise be excluded because they’re too young, too old, new to the country or they have a thin credit file, that gives customers a reason to say yes to data consent.

If we can use customer’s data to identify financial vulnerability before those customers get into debt and to protect them long-term, that gives customers a reason to say yes to data consent.

Building Open Banking solutions based around making account applications quicker and easier might be an initial headline, but we need to build around the user experience and we need to put customers at the heart of the proposition.

If we make it easy for those customers to understand why they’re at the heart of the proposition, we give them the reason to say yes to data consent.

Without consent, Open Banking will be an also-ran – an Oscar nomination instead of a statuesque winner.

 

To find out more about Open Banking, about Callcredit’s work in the Open Banking space or to be involved in developing solutions with us, please contact Callcredit (contact@callcreditgroup.com) or call us on 0113 388 4300

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