Small businesses lack awareness of the Open Banking revolution

Small businesses lack awareness of the banking revolution, two years after the introduction of Open Banking, new research led by Intuit Quickbooks has revealed, according to Accountancy Age.

While most small businesses owners have heard of Open Banking, almost half are unable to explain the term or do not fully understand its meaning, according to the study. Nearly half of respondents (48%) also do not believe that technology will impact their business, despite the improvement it could provide to business cash flow management. 

Poor cash management remains the key reason for small business failure in the UK, but there is hope for this to change. Small business owners believe that an additional push would influence them into adopting Open Banking, with 59% seeking information on what it consists of and how it can impact their business. 

Open Banking allows businesses to see their finances in one place, meaning they remain up to date with their cash flow and build the resilience of their business against unexpected financial shocks. 

However, only a quarter currently say they would value having full visibility of their business’ financial health in a single place. 

As a result, accountants will have a significant influence in encouraging business owners to embrace opportunities offered by Open Banking, where small business owners are more likely to ask support from their accountant than any other source.