Open banking will only mean more bad deals for the most vulnerable

Banks will know more about you - which could be a bad thing

Open banking. Sounds great, doesn’t it? An end to all that secrecy and confusion. Banks are finally going to open up, tell us how they work, how their baffling security procedures are formulated and how they calculate their interest rates, right? If only. Open banking just means you – the consumer – being more open with your own data.

The scheme, which allows banks to reveal your financial information to other companies, with your permission, is coming in less than a week. It’s meant to mean you can access better deals and is widely touted as a power shift in favour of consumers. But it could also make life much more expensive for some of society’s most vulnerable groups: the poor, elderly and less digitally literate.

Many people still like to go to their branches

For a start, those who prefer to stick to branches and letters through the post will effectively be excluded. Britain’s dwindling army of analogue stalwarts might think this...

To continue reading this article

Start your free trial of Premium

  • Access all Premium articles 
  • Subscriber-only events 
  • Cancel any time

Free for 30 days

then only £2 per week

Access one Premium article per week

To continue reading this article log in to your Telegraph account. Or register now, it's free.
Registered customers can access one Premium article per week
Unlimited access to exclusive stories.
Half price for one year.
  • Access all Premium articles
  • Subscriber only events
  • Cancel any time
Free for 30 days, then just £1 per week