Despite Open Banking first being revealed two years ago, there is still a lot of confusion around what it actually is, a new study from Intuit QuickBooks claims.
While 69% of the small businesses it interviewed had heard of the term, around 45% could not explain it or do not fully understand what it is. Furthermore, 48% felt the technology would not have an impact on their business.
This lack of knowledge is not deterring appetite. The report claims 59% of businesses called for more information to be released clearly explaining what it is and how it impacts them.
Another finding of the research is that only 27% of small businesses put value in having full visibility of their business financial health in a single location.
Intuit QuickBooks director of corporate affairs Rob Burlison said, ?Today research shows that small businesses are in danger of missing out on the massive benefits Open Banking could bring. It is clear that as an industry we could do more to assure businesses of the security measures in place and demonstrate the tangible benefits of Open Banking and connected technology.
?Cash flow remains the number one reason for small business failure and with half of businesses that start in the UK still failing within the first five years, Open Banking is a great opportunity to help more small businesses in the UK thrive.p>
The study was conducted by Opinium and collected responses from 502 UK SMEs.
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