A recent report by the ODI and the Fingleton Associates explored how competition and consumer value could be stimulated by providing UK customers with their own bank transaction data. The idea is that if banks open up their customer’s transaction data via an API and OAuth, a competitive market would emerge generating new economic, business and customer value. What interested me most was the different ways this data can be used:
“Many of the use cases described rely on being able to access not just individual account data, but also aggregated data (anonymised account data) and reference data (banks’ respective charges, terms and conditions), ideally published as open data. This includes the core ‘Midata’ account switching use case, which would benefit from more standardised data on PCA terms and conditions in achieving its potential.”
Part of the proposal is a midata style data feed for the individual. This enables customers to take back control of their data via a new wave of intermediaries known as Personal Information Management Services (PIMS). These services work on behalf of the customer, using their personal data to help them make better decisions, get things done and take control of their personal data.
The other aspect of the proposal is to provide aggregated and anonymised account data and information on banks’ terms of service. The former will be an amazing source of market insight which will help organisations better understand consumer spending behaviour. The latter will provide unbiased transparency on where consumers can get the best deal.
On first reflection, this new move looks like a win for both private sector growth (PIMS and FinTech start-ups) and real people operating in the digital age.