A recent Bank of England working paper highlights the link between banking market competition and financial system stability. Consistent with earlier work, it highlights that as competition increases, the banking system overall responds typically by moving to higher risk lending. However, in addition, it describes how individual banks tend to converge with the most-risky becoming more secure as competition increases.
Open Banking will transform UK banking. For consumers, the whole experience will be more convenient, with better digital banking capability, more targeted and appropriate products and potentially better deals.