• Industry needs Open Banking ‘Trust Mark’ to overcome data-sharing concerns
• Cash and cheaper household bills most popular customer rewards

London, 12 December 2018 – New Open Banking propositions in the UK must tackle trust issues head-on to overcome data-sharing nervousness among customers, according to a new study from Cardlytics (NASDAQ: CDLX), the purchase intelligence platform.

The new report, Open Banking in the UK: Finding the tipping points [hyperlinked], analyses the attitudes of UK bank customers and highlights key factors which must be considered for Open Banking to truly take hold in the UK.

While there are still barriers to adoption, the report found cause for optimism, with a growing number of people saying they would open up access to their financial data if the proposition was right for them. It also established the tipping points at which consumers would engage with Open Banking offerings.

Over half of people (54%) would share their financial data in return for tangible rewards, with cash and more affordable household bills topping the list of desired benefits.

Nearly a year on from the introduction of Open Banking in the UK, almost two-thirds (74%) are unaware of what it means for them, and of those claiming to be aware, a majority have a limited understanding of what it actually entails.

Cardlytics has identified four key pillars to broader adoption of Open Banking in the UK – trust, consumer awareness, customer experience, and the value exchange – which signal a number of industry changes that would need to occur in order to remove key barriers.

These include radical simplification to the account-linking process to reduce the friction in the current way of banking, and the creation and industry-wide adoption of an Open Banking Trust Mark to reassure consumers and ensure minimum governance standards.

Jed Murphy, UK Head of Strategy & Innovation at Cardlytics, said: “Most people knew there wouldn’t be a ‘big bang’ moment with Open Banking. But even as we approach the end of 2018, it is some way off from effecting real consumer change. Old habits die hard when it comes to your personal finances, particularly around privacy. If entrenched customer behaviour is going to change, concerns must be tackled head-on, with industry-wide changes and truly compelling propositions.”

Trust critical for consumers making the leap
While the research found a clear trust barrier to adoption, it sheds light on those best-placed to succeed. Financial institutions, and other providers with whom consumers already have a financial relationship, rank highest among those customers would trust with Open Banking. Other financial services providers, utility providers, loyalty schemes, price comparison websites, mobile phone networks, supermarkets, and airlines also ranked.

Most trusted traditional financial services providers beyond primary banks

Jed Murphy added:
“Bank customers need a compelling reason to start using Open Banking propositions. It’s clear from our research that the ‘what’s in it for me?’ matters and will be driven by practical benefits rather than lofty promises. Both established banks and new challengers must not only navigate people through the initial hurdles but find ways to drive engagement in the long-term through ‘hooks’ that truly matter.”

 

About Cardlytics
Cardlytics (NASDAQ: CDLX) uses purchase intelligence to make marketing more relevant and measurable. We partner with more than 2,000 financial institutions to run their banking rewards programs that promote customer loyalty and deepen banking relationships. In turn, we have a secure view into where and when consumers are spending their money. We use these insights to help marketers identify, reach and influence likely buyers at scale, as well as measure the true sales impact of marketing campaigns. Headquartered in Atlanta, Cardlytics has offices in London, New York, San Francisco, and Visakhapatnam. Learn more at cardlytics.com.

Methodology
The report on which this press release is based was commissioned in July 2018 by Cardlytics in collaboration with YouGov who surveyed 3,020 members of the general public who pay regularly into a bank account. Sample was weighted to national proportions on age, gender and social grade.

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