Britain’s largest banks are being pushed into a mobile banking revolution.
The Competition and Markets Authority (CMA) has announced new rules requiring that customers have access to details of their entire financial account through a single mobile app. The new system must be implemented by 2018.
Other traditionally branch-based services will also be made available directly through smartphones. Banks have been told that customers must be able to apply for loans, overdrafts and mortgages through their mobile phone.
Market competition will be strongly affected by customer ability to access all finances in one place – including accounts and mortgages managed by different providers. This will allow customers to compare rates and rapidly move money which they perceive is getting a poorer deal.
Conrad Ford, chief executive at Funding Options, commented:
"Once open banking is up-and-running, new entrants will be able to enter the financial services market far more easily, whether brand new technology startups, or major technology players like Amazon."
Aside from being a customer friendly move, the technology revolution will make the financial services market more accessible to new players.