Data security key for consumer confidence in open banking

Reservations about data security pose the biggest challenge when it comes to increasing consumer confidence in open banking, with 86% of respondents to a recent Forrester Consulting (on behalf of TransUnion) survey concerned about data being sold and 82% concerned about data breaches. As financial institutions begin their push into the open banking era, it will remain important for them to listen to consumer concerns and communicate a clear and consistent message that lets consumers know exactly how their data will be used, the benefits of sharing it and that it will be protected. In fact, such messaging could potentially be a huge advantage for traditional financial institutions as consumers have indicated far more willingness to trust them than to trust newer entrants into the financial services industry.