In its most recent survey, Yolt Technology Services revealed that 48% of senior professionals believed the main risk involved with open banking technology revolved on the cost and liability associated with processing consumer data.
It comes as almost three million British consumers are using open banking services as well as the recent news that HMRC has now adopted Open Banking payments.
Roderick Simons, Chief Technology Officer at Yolt Technology Services, stated: “Technical service providers like YTS make open banking not only accessible to every business, but also more cost-effective and with less risk than building a solution from scratch. It seems that many companies are unaware this choice exists and are therefore missing out on growth opportunities because of their misconceptions and misunderstandings about their role in keeping customer data safe.
“The reality is that TSPs shoulder all of this risk, with little downside for the adopting business. It’s clear there’s a knowledge gap which needs to be filled, and it’s not the fault of businesses that they have these beliefs – it’s up to our industry to change them.
“A core objective of our research was to understand how we can do this and how we can help businesses to adopt the technology and reap its rewards. Education and collaboration are at the heart of our approach, and we’re committed to spreading knowledge and educating businesses about how they can transform the way they operate with open banking.”
As well as this, businesses are prohibitively concerned by perceptions they will have to take responsibility for large levels of personal and financial data, believing it is costly to both store and protect. This was particularly strong in the retail sector, with nearly two-thirds (61%) echoing this sentiment.