By Kristy Dorsey
Nearly three-quarters of Scots are uncomfortable sharing more data about their lives with banks and big tech companies to access financial services more easily, according to a new report.
The findings from the Finance Innovation Lab come as the Financial Conduct Authority (FCA) gathers industry input on the development of Open Finance, which aims to create a wider range of products and services through third party data sharing. This would allow information such as mortgages, savings, pensions, insurance and consumer credit to be shared.
READ MORE: 'Open Banking’ customers can benefit by allowing third parties to access finances
But the Finance Innovation Lab points out that many consumers are unconvinced by the benefits of Open Finance, with 69 per cent of people across the UK saying they are uncomfortable about sharing more of their data. In Scotland, that number rises to 73%.
The report also warns that increased use of personal data could put millions of vulnerable people at risk of financial difficulty. According to the FCA, more than half of the UK population, nearly 28 million people, are at risk of financial vulnerability.
The report includes 12 recommendations to mitigate the risks of Open Finance. The Finance Innovation Lab was set up in 2009 by WWF-UK and the ICAEW to help change the financial system so its serves people and the planet.
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