Despite Open Banking being revolutionary in the way people interact with and manage their finances, six in 10 (60%) UK adults are unaware of Open Banking and its benefits, according to new research from Bluestone Mortgages.1 This comes at a time when more than a fifth (22%) of consumers say they use three or more individual bank accounts.
While Open Banking is increasingly being used in the mortgage market to streamline the application journey, nearly a third (31%) of people would not trust sharing their bank statements or payslips online with a mortgage broker or lender when applying for a mortgage. Additionally, one in five (20%) wouldn’t be willing to use Open Banking to share their data even if they were asked to because of privacy concerns due to fraud and hacking.
Ryan Davies, Strategy Director, Bluestone Mortgages, comments: “The use of technology will be key to the future growth of the mortgage market. 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 and their ability to repay their mortgage.
“With awareness of Open Banking still low, the mortgage industry has a key role to play in educating customers about the benefits of Open Banking and how it can help their customers secure a personalised mortgage offer more quickly and easily. Brokers need to arm themselves with knowledge so that they can confidently answer any of their clients’ questions and quieten their concerns.”
