The majority of consumers in the UK (70%) are using financial apps for money management, up from 40% in 2016, according to a new study by open banking money management outfit, Yolt. This figure rises to 89% amongst millennials and almost half of over-55s.
At the same time, awareness of Open Banking, facilitated by the PSD2 legislation in January and designed to make banks open up to create greater competition and more consumer choice, is yet to catch fire.
- 6% of consumers think there is now more competition between banks and financial service providers.
- 20 % said they are now able to see their different accounts in one place.
- Despite this, only 22% are aware of Open Banking, whilst 60% said their main bank hadn’t informed them about the Open Banking changes.
Nearly three-quarters of Brits are now using some kind of app to manage their money. This is great news as we see Open Banking transform the way consumers interact with the retail financial services sector. However, we still have a way to go in educating consumers on the latest benefits available to them through Open Banking.