Many business owners are unsure what benefits Open Banking can bring, a new survey has indicated.
Most owners of small businesses are wary about sharing their data electronically, holding back the rollout of Open Banking which makes it easier to manage their money.
Fewer than one in seven business owners questioned by the Federation of Small Businesses (FSB) said they were sharing the details of their business bank accounts with third parties.
It means that most businesses are not getting the benefits of Open Banking, which puts invoice, cash flow, payroll, utilities and tax data all in the same place, the FSB said.
The survey of 1,000 business owners found that two-thirds of smaller companies would not consider sharing their banking data electronically with other financial service providers.
Four in 10 of these think that it is unsafe, while 37% say they are “unsure of the benefits” it could bring. Most say they are “wary” of sharing the information.
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