Some UK fintech firms say various credit card issuers are not allowing their customers full access to their data, costing consumers “millions”. blaming.
In a letter to city minister Andrew Griffiths, Gavin Shuker, CEO of credit card management startup Cardeo, said the UK’s 14.5 million coupon cardholders are under external pressure from the cost of living crisis. Said I was losing money in It was reported on Saturday (October 8).
And James Vargas, CEO of credit-scoring FinTech DirectID, said the original goal of open banking was to “share all of your bank statements,” and that only a handful of people are actually doing that. It says it’s a bank only.
The letter shows the frustration of fintech companies who argue that customers should be able to share their full financial data. This could help fintech companies offer more savings services, such as personalized spending insights, ways to manage credit card debt, and cheaper payment methods. .
Scheme and processing fees on card networks could cost UK businesses £1.9 billion a year, according to campaign group Ax the Card Tax. 2018 regulations require credit card issuers to allow customers to access and share online account data with third parties, but not for things like interest from monthly statements and loyalty scheme points. It will not be.
UK consumers have generally become more open to digital banking, with more services expanding to meet surging demand.
read more: Digital lenders flood UK mortgage market as battle with incumbents grows
PYMNTS recently wrote that traditional banks have been able to gain a foothold in a changing world, depending on the products and services they offer. Customer expectations also differ between neobanks and traditional financial institutions.
In a recent PYMNTS survey examining these expectations, 41.2% of respondents expected to be able to raise money from traditional banks, while only 28.6% expected the same from FinTech. did.
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New PYMNTS Survey: How Consumers Use Digital Banks
A PYMNTS survey of 2,124 US consumers found that while two-thirds of consumers use FinTechs as part of their banking services, only 9.3 call them their main bank. % was.
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