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Open banking — it's what it says on the tin, with added advantages to empower SMEs A GLOBAL research project suggests Open Banking is set to change the nature of entrepreneurialism, small business and broader society. Two years on from its launch in the UK, 40 percent of UK small business decision-makers admit to knowing little or nothing about the subject. The report identifies three trends expected to “power the disruption and usher-in a decade of prosperity and financial wellness” for the UK’s small business owners. 1) AI could increase control and lessen financial stresses and administrative burdens that come with running a business.
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2) Banking as a Service (BaaS). Banks will involve business owners taking meaningful decisions while administrative tasks happen seamlessly in the background. 3) Open banking is providing small businesses greater ownership of their data. Chris Evans, vice-president and UK country manager at Intuit QuickBooks, which commissioned the study, said it looks at the associated opportunities for small businesses in the UK. It paints a picture of a future where financial services and small businesses work hand-in-hand to drive success. “The Open Banking revolution will empower small
business owners that want to do things differently and embrace new and better ways of working,” he said. “Those that want to power their productivity will build personalised suites of financial services that suit their individual needs.” The new future of a mix-andmatch approach to financial services will see SMEs being able to tailor their financial “wardrobe” to their specific needs, Evans said, and remove the need to switch their main banking provider. Many small businesses feel obliged to stay with their existing bank, the study shows. “They worry about whether
Promise of open banking – that’s not what they meant, but dream on...
