Latest UK Rules Make It Easier For Facebook And Google To Intervene Into Banking
- After many years, the UK has finally seen the open banking rules come into force and action.
- These rules specify that any financial companies or banks will have to share confidential data with third-parties with consent from the consumers.
- The intended purpose of making such a change in law is to promote the comparison and easy switching of bank accounts.
- There are many people who believe that the intended purpose is certainly double meaning with many banking sectors becoming more accessible by tech magnets like Facebook and Google more easily after it.
New Rules Now in Force
There have been new rules regarding the banking sector of the UK that have come into full force. These rules specify how the banks of UK will have to share their confidential data with third-parties.
Open Banking Launched in January 2018 In The UK
The rule of ‘open banking’ came into action on the 13th January 2018. As per this rule, the top 9 leading banks of the UK have been ordered to share confidential and private customer data with any 3rd parties. However, it is crucial that the customer provides his consent before such an action can be taken.
Purpose of Rule Changes
The aim of the change in rules is to achieve the following financial sector goals in the long run.
- It is hoped that there will be a significant change in the price comparison observed post this modification in state rule.
- Account switching will be made easier for the customers. Hence, they will find it easier to alternate between accounts.
Downside to New Rule
However, there is definitely a downside to this subsequent change in the rule as well. This change is noticeable by only a handful of financial watchers. These people are concerned that this changed rule will make it easier for majestic tech giants like Amazon and Google as well as various social platforms like Facebook to reach into the financial sector of the UK. Hence a very distinctive and obvious discrimination will surely fade.
The official digital financial consultant of Wired UK – David Birch – spoke on behalf of the organization. He predicts that this law has only carved a pathway for tech giants namely Google, Amazon, Apple and Microsoft to intrude with the financial sector of the UK. It is expected to happen by the end of this year.