Customer data access and fintech entry: early evidence from open banking

Tania Babina (), Saleem Bahaj, Greg Buchak (), Filippo De Marco (), Angus Foulis (), Will Gornall (), Francesco Mazzola () and Tong Yu ()
Additional contact information
Tania Babina: Columbia University
Greg Buchak: Stanford University
Filippo De Marco: Bocconi University
Angus Foulis: Bank of England, Postal: Bank of England, Threadneedle Street, London, EC2R 8AH
Will Gornall: University of British Columbia
Francesco Mazzola: ESCP Business School
Tong Yu: Imperial College London and Financial Conduct Authority

No 1059, Bank of England working papers from Bank of England

Abstract: Open banking (OB) empowers bank customers to share transaction data with fintechs and other banks. 49 countries have adopted OB policies. Consumer trust in fintechs predicts OB policy adoption and adoption spurs investment in fintechs. UK microdata shows that OB enables: i) consumers to access both financial advice and credit; and ii) small and medium‑sized enterprises to establish new fintech lending relationships. In a calibrated model, OB universally improves welfare through entry and product improvements when used for advice. When used for credit, OB promotes entry and competition by reducing adverse selection, but higher prices for costlier or privacy-conscious consumers partially offset these benefits

Keywords: Open banking; entrepreneurship; fintech; financial innovation; data access; data rights; data portability; Big Data; financial regulation; financial sector; banks (search for similar items in EconPapers)
JEL-codes: G21 G28 (search for similar items in EconPapers)
Pages: 102 pages
Date: 2024-02-08
New Economics Papers: this item is included in nep-ban, nep-com, nep-ent, nep-fdg, nep-mac, nep-pay and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://www.bankofengland.co.uk/-/media/boe/files/ ... rom-open-banking.pdf Full text (application/pdf)

Related works:
Working Paper: Customer Data Access and Fintech Entry: Early Evidence from Open Banking (2024)
Working Paper: Customer Data Access and Fintech Entry: Early Evidence from Open Banking (2024)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:boe:boeewp:1059

Access Statistics for this paper

More papers in Bank of England working papers from Bank of England Bank of England, Threadneedle Street, London, EC2R 8AH. Contact information at EDIRC.
Bibliographic data for series maintained by Digital Media Team ().