Four and a half years since open banking regulations came into effect, one of the biggest causes of customer friction has been addressed by the Financial Conduct Authority – scrapping the 90-day data sharing rule.
Data sharing between authorised third-party providers (TPPs) – often fintech companies – and banks promised to give customers better choice and control over their finance. While the ambition has already been realised to some degree, with 10-11% of digitally-enabled consumers now estimated to be active users of at least one open banking service, unnecessary friction in the customer journey means that this figure remains modest.
Outlining its proposed amendments to the rule in November 2021, the FCA revealed that some TPPs experienced significant customer attrition rates of around 20-40% at the 90-day mark when customers had to re-authorise access to their accounts....