Britain counting on financial tech for banking revolution

LONDON: British banks will from 2018 have to share customers’ data with third parties who can then show how much could be saved by using other lenders, the competition

LONDON: British banks will from 2018 have to share customers’ data with third parties who can then show how much could be saved by using other lenders, the competition watchdog said on Tuesday.

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New banks, consumer advocates and lawmakers, however, derided the plans as relying too much on people’s ability and willingness to use new technology.

Customers are paying more than they should for banking and are not benefiting from new services, the Competition and Markets Authority (CMA) said in its final report after a three-year review of consumer and small business banking.

Financial technology, or “fintech”, companies are expected to offer smartphone “apps” and websites that use customers’ information to enable them to compare bank charges.

The CMA believes setting a 2018 deadline will also boost the “fintech” sector, which uses technology to make financial services cheaper and more efficient.

The government wants to see fintech grow, but European Union countries like Germany would like to lure the sector from London after Britain voted to leave the bloc.

“This is a real opportunity for the UK to take the lead. We are going to make it happen and give it a push to get it across the line,” Adam Land, a senior director at the CMA, said. “There is no question that fintech companies are champing at the bit.”