Could Open Banking Be the Biggest Scam in Financial History? A Critical Examination
Could Open Banking Be the Biggest Scam in Financial History? A Critical Examination Open Banking has been hailed as a revolutionary development in financial services, promising increased competition, innovation, and consumer choice. However, it's crucial to critically examine who truly benefits from this system and whether it may pose undue risks to consumers. Distribution of Benefits While Open Banking is often presented as universally beneficial, the distribution of these benefits may not be equal. Large tech companies and established fintech firms may be better positioned to capitalize on Open Banking than smaller players or traditional banks. Consumers who are tech-savvy and financially literate may benefit more than those who are not. The complexity of the Open Banking ecosystem might make it challenging for average consumers to make informed choices. Financial Conduct Authority found that 70% of Open Banking users in the UK were in the top 40% income bracket, suggesting a po...