Nearly a third of respondents would not share bank statements or payslips online
A significant portion of the UK public remains unfamiliar with open banking, despite its growing role in the financial sector, according to new research from Bluestone Mortgages.
The survey found that six in 10 UK adults are unaware of open banking, a technology designed to streamline the management of personal finances by securely sharing data across financial institutions.
The findings come at a time when many consumers are juggling multiple bank accounts. Over a fifth of those surveyed (22%) reported using three or more accounts, indicating a potential for open banking to simplify their financial management. Yet concerns over privacy and data security appear to be barriers to broader adoption.
The survey revealed that nearly a third (31%) of respondents would not trust sharing bank statements or payslips online with a mortgage broker or lender when applying for a mortgage. Furthermore, one in five said they would refuse to use open banking due to fears of fraud or hacking.
Ryan Davies, strategy director at Bluestone Mortgages, highlighted the potential impact of open banking on the mortgage industry. “The use of technology will be key to the future growth of the mortgage market,” said Davies (pictured).
“As open banking becomes more widely adopted in the mortgage market, it will transform the credit application process, making it seamless and easier for brokers to make informed decisions about their customers’ financial situation.”
Davies emphasised the need for greater public awareness. He called on the mortgage industry to take a leading role in educating customers about open banking’s benefits, particularly its ability to speed up mortgage offers and deliver more personalised solutions.
“Brokers need to arm themselves with knowledge so that they can confidently answer any of their clients’ questions and quieten their concerns,” noted Davies.
The research, conducted by Pegasus Insight between April 11-22, 2024, surveyed 2,000 UK adults aged 18 and over, with a sample that is nationally representative. Among the respondents, 483 had experienced one or more adverse financial events in the 12 months leading up to the survey.
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