View all newsletters
Receive our newsletter - data, insights and analysis delivered to you

Personalisation key to consumer adoption of open banking

Under open banking, financial institutions will have to adopt customer loyalty solutions in order to stay ahead of competition.

By James Nunns

One in two UK consumers would be happy to use open banking and share transaction data with third parties if they are offered a more personalised service, a recent study has found.

One in three would be happy to use banking services from technology companies because of the personalisation they offer, it said.

The study said UK banks that missed January deadline for open banking are now facing the end of their extension period and the deadline for HSBC and Nationwide to implement compliant payments functionality will also end in February 2018.

Fintech firms must ‘collaborate or fail’ warns Capgemini
Targeting Neo-Luddites in the 21st century
The year the workers revolt: Why flexibility is vital for businesses in 2018

So far, established financial services providers have relied on large, static customer bases. However, with the implementation of open banking, customers will be able to allow third-party access to their accounts and financial data, facilitating tech companies to offer direct financial services and providing increased visibility to consumers.

According to the study, open banking is expected to change the rigid rules of the game, make the financial services market more transparent and put new and established service providers on an equal footing.

While new players are likely to attract customers by offering better deals and ultra-personalised service, established providers will be required to communicate in an increasingly personalised way to prove that they are making efficient use of the data they hold.

Furthermore, the study said that under open banking, financial institutions will have to adopt customer loyalty solutions to stay ahead of competition and smart and precise communication alone could create such a relationship between a bank and its clients.

Content from our partners
Green for go: Transforming trade in the UK
Manufacturers are switching to personalised customer experience amid fierce competition
How many ends in end-to-end service orchestration?

Relationship marketing hub Optimove CEO Pini Yakuel said: “Banks and financial services providers will have to focus on giving the best possible value to the customer, to stop them switching to their competitors. Offering highly tailored communications will be key to this.

“Financial services firms will be looking at their existing data to find out what value means to each person, and adapting marketing strategies in an emotionally-intelligent way to make every customer feel special.

“Consumers are likely to see an increasingly personalised experience, as old and new financial companies move to distinguish their brand with promotions and rewards tailored to each individual, like retailers.”

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
THANK YOU