48% of senior professionals in financial services believe open banking increases data protection burdens – study claims

48% of senior professionals in financial services believe open banking increases data protection burdens – study claims

Nearly half of senior professionals within businesses feel open banking will have huge costs to store and protect data, a new study from Yolt Technology Services claims.

Yolt’s latest survey claims that 48% of senior professionals working in financial services business believe the main risk with open banking technology is the cost and liability of processing consumer data.

It also stated that this was a particularly strong sentiment within the retail sector, with 61% believing open banking would be costly to store and protect data.

However, Yolt claims that the security architecture of application programming interfaces (APIs) used by TSPs and carry open banking data is incredibly safe.

Yolt Technology Services CTO Roderick Simons said, “Technical service providers like YTS make open banking not only accessible to every business, but also more cost-effective and with less risk than building a solution from scratch. It seems that many companies are unaware this choice exists and are therefore missing out on growth opportunities because of their misconceptions and misunderstandings about their role in keeping customer data safe.

“The reality is that TSPs shoulder all of this risk, with little downside for the adopting business. It’s clear there’s a knowledge gap which needs to be filled, and it’s not the fault of businesses that they have these beliefs – it’s up to our industry to change them.”