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Banks could face new challenges under the Competition and Markets Authority (CMA) Open Banking initiative which will enable them to manage all their finances from a single place in a bid to promote a more competitive playing field.

Open Banking which will be introduced in 2018 would allow individuals and businesses to manage their accounts from a digital app enabling them to share their data securely with multiple banks and third parties.

But, Michael Allen, vice president of solutions at Dynatrace, a digital performance management company, said: “Providing access to an account from another bank through a mobile app is going bring with it a number of challenges and questions.

“From the consumer perspective this is great, but what happens when there is a problem with the app, like an account doesn’t load or the app runs slowly?

“Who will they blame for the problem and who will be responsible for solving it?

“For banks, this is going to raise some interesting questions about how they manage and control the consumer experience, even though they aren’t ultimately responsible for all the services being provided through the app.”

Banks will also be required to publish trustworthy information about the quality of the services they provide both online and in-store so that customers can compare and assess how their bank shapes up.

Overall the aims of the measures imposed by the CMA are to ensure banks work harder for customers while using the benefits of new technology.

Alasdair Smith, chair of the retail banking investigation, said: “The reforms we have announced today will shake up retail banking for years to come, and ensure that both personal customers and small businesses get a better deal from their banks.

“We are breaking down the barriers which have made it too easy for established banks to hold on to their customers.

“Our reforms will increase innovation and competition in a sector whose performance is crucial for the UK economy.

“Our central reform is the Open Banking programme to harness the technological changes which we have seen transform other markets.

“We want customers to be able to access new and innovative apps which will tailor services, information and advice to their individual needs.”

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