Open Banking ushers in age of the ‘multi-banked’

New research has revealed that 42 per cent of financial management platform users have more than one bank account, as they take advantage of technological innovation and data sharing in financial services.

Analysis of 3,000 Moneyhub users with multiple bank accounts found that while many more people are joining digital challenger banks, 65 per cent of those challenger bank customers also still have accounts with their previous High Street lender.

In fact, just 26 per cent use the challenger bank for their primary account.

While this may suggest that the challenger banks don’t have as much of a stronghold over their customers as might have been expected, just dislodging this cohort of sticky traditional bank customers is an achievement.

An investigation from the Competition & Markets Authority in 2016 showed that three quarters of current account customers had never switched banks.

Samantha Seaton, chief executive of Moneyhub, pointed out that Open Banking means that it will be those enterprises that ensure their customers benefit from data sharing that will come out on top.

“For those customers currently ‘trying out’ different banking providers, it can be helpful to see all your accounts in one place,” she stated. “Using a money management platform makes moving money between accounts much more streamlined, helping users to feel more comfortable with embracing multi-banking.”

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