The UK’s new Open Banking initiative could provide a £1bn boost to the country’s economy, research indicates.

 

Since customers can now make their financial data available to third parties such as challenger banks, this should increase competition in the marketplace according to a new study from the Centre for Economics and Business Research (Cebr) and review platform Trustpilot.

 

In turn, since banks will have a better picture of credit risk and be forced to compete, this will push them to reduce the risk premium currently charged on interest rates linked to products like mortgages.

 

 

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