2. Security
Concerns about security were a consistent theme across all the research conducted. Consumers and SMEs recognise that there are risks inherent in sharing banking information and data. However, their understanding of the nature of such risks and what can be done to mitigate them is limited.
Concerns stem from uncertainty and focus on issues such as data sharing and privacy, fears about cybersecurity and fraud. Providing reassurance about the security of processes and journeys will be fundamental to the success of the Open Banking ecosystem.
The research shows that concerns about security tend to be expressed more strongly concerning PIS journeys. Security is vital for both consumers and SMEs, but it is especially critical for SMEs, due to the nature and scale of the transactions involved. SMEs are more likely to be making more payments of higher value, and their businesses may depend on these being made securely. There may also be reputation considerations involved.
There is a link between security and control, as being reassured about security gives PSUs a sense of being in control, which will increase their willingness to explore products, services and benefits available more fully.
There is also a link between security and ease. Consumers would prefer not to have to enter details manually but for details to be prepopulated or dropdown boxes provided. Not only is this easier for the consumer, but it also minimises the risk of them making errors.
Consumers want guarantees and protection to be built into Open Banking customer journeys. They tend to look to both ASPSPs and TPPs to provide this. However, they recognise that there could be a trade-off involved between the need for protection and potential offers, discounts or benefits, and may be willing to take more risk in some circumstances, particularly when making smaller transactions.
Consumers need security messages to be clear and well sign-posted, and they value confirmation and reconfirmation. Some customers also value the extra step involved in decoupled journeys.
Providing supplementary information plays a vital role in delivering reassurance and a sense of security for consumers. Consumers express concern if some journeys feel ‘too easy’. Consumers would feel more comfortable if, for example, the process of initiating more substantial payments had more positive friction within it than that for smaller transactions.