Open Banking could provide a £1bn boost to the UK economy as banks are forced to compete, says a new study

City A.M.

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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