It’s very easy to get so completely immersed in the world of business – with its jargon, its theories, and its minutiae – that you completely forget that there’s a whole life beyond it that does not care for its language or conform to its rules. This is especially true when technology is involved.
Popping your head above the parapet can reveal vast gulfs between the two worlds, gulfs which prevent them from connecting for mutual benefit.
The gap between the business world’s enthusiasm for recent developments in financial services and consumers’ befuddlement over it is one such example. Advocates for Britain’s Open Banking and for the EU’s Second Payment Directive (PSD2) believe that they will erode many traditional barriers to market entry and therefore increase competition, while sowing the ground for innovative new products and services.
These two dynamics will create a more favourable market place for consumers by offering them more choice, lower prices, and better quality services. Not every advocate believes this will happen immediately, and many see it as a long journey. But the optimism is definitely there.
By contrast, a fairly recent poll from YouGov found that from a pool of 2,000 people, 90% had not heard of Open Banking. Just as alarmingly, 45% went on to report that they are unlikely to use Open Banking services once they become available.
Plenty of revolutions have had a huge impact without people understanding what they are. Why is it different with Open Banking?