Feature


Business Banking & Finance


Say hello to methods of banking


alternative


economic forces undercutting the traditional role of banks. Reports have found that 2,868 branches have closed since 2015. And although banks are still the ‘top dogs’ in business finance, there are a number of alternative options arising such as Open Banking and Crowdfunding.


T


Open Banking Traditionally banks have held all of our financial information, but a change in UK law has enabled us to allow other businesses, alongside the bank, to access our financial data. Open Banking is an innovative


development designed to let apps and online services communicate the best deals for its consumers and


he days of traditional banking are on the decrease due to fundamental


analyse their spending. With the permission of the consumer, these regulated third parties will deliver services that are tailored specifically to the individual. Plans to move into the digital world are well underway and four out of the nine UK biggest current account providers will be using Open Banking by 13 January next year. Open Banking is built a data-


driven service, unlike traditional banking methods. The idea is that consumers will be more in control of their finances by allowing businesses to have insight into the information


in their bank, which they can then utilise for a profitable increase.


Potential risks regarding data


privacy and security have emerged. Although banks can block data access from third parties if they suspect fraud, this does not completely eliminate the risk.


Crowdfunding Crowdfunding is another alternative method of banking that has become more popular in recent years – in fact, crowdfunding is the most frequently searched term on business funding in the UK. Crowdfunding is very similar to


the traditional act of borrowing – the borrower will fund a venture or project by asking for funds. The


‘Open Banking is an innovative development designed to let apps and online services communicate the best deals for its consumers’


50 CHAMBERLINK November 2018


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76