Some UK FinTechs have accused various credit card issuers of failing to give customers full access to their own data and costing consumers “millions”.
In a letter to City Minister Andrew Griffith, Gavin Shuker, chief executive of credit card management company Cardeo, said the UK’s 14.5 million interest-paying cardholders have been losing money. amid external pressures from the cost of living crisis, the Financial Times reported on Saturday (Oct 8).
And James Vargas, CEO of Credit Scoring FinTech DirectID, noted that the original goal of open banking was to “share everything on your bank statement,” something only a few banks really do.
The letter showed FinTechs irritation, as they argued that customers should be able to share their full financial data, which could help FinTechs offer more money-saving services like personalized spending insights, ways to manage credit card debt credit and cheaper payment methods. .
According to campaign group Ax the Card Tax, the scheme’s fees going to card networks, along with processing fees, could cost UK businesses a total of £1.9bn per year. The 2018 regulations require credit card issuers to allow customers to access and share account data online with third parties, though it does not apply to things like interest rates and state loyalty scheme points. monthly account.
UK consumers, in general, have become more open to digital banking, with more services expanding to meet growing demand.
Read more: Digital lenders flood UK mortgage market as battle against incumbents grows
PYMNTS recently wrote that, depending on the products and services offered, traditional banks have been able to cling to a foothold in the changing world. Customer expectations also vary between neobanks and traditional institutions.
In a recent PYMNTS study looking at those expectations, 41.2% of respondents said they expected to be able to obtain financing from a traditional bank, while only 28.6% expected the same from a FinTech.
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