Points

Question 1

Implications of Open Banking

Answer 1

Enhanced competition & lower barriers to entry

Lower search costs for consumers

Less dependence on banks & credit cards

Financial inclusion

Question 2

Challenges to consumer

Answer 2

Security risk

Lack of understanding

Erosion of relationship banking

Question 3

Challenges to banks

Answer 3

increased competition

disintermediation

New business risk

Pressure to innovate

Question 4

Implications of P2P lending

Answer 4

Direct borrowing & lending

cost efficient

increase access to credit

diversification

innovation

Question 5

issues of P2P lending

Answer 5

Success depends on number of borrowers & lenders

Documentation a challenge - investors make final decision whether to lend not platform

If borrowers default - no deposit guarantee schemes

No protection if firm goes bankrupt (trust buddy 2015)