As the UK’s Gambling White Paper excitement gives way to a mass of consultations, with the final destination perhaps little clearer than it was a year ago, there’s mention in the report of something which to me, as someone with an offline background, prompted a bit of research. Indeed, in the section of the White Paper related to online protections, there’s mention of open banking – although they’ve not even capitalised it. Like perhaps most people, I only recently realised that open banking was a significant movement in the UK banking industry.
A year or so ago, I opened my company bank account app (NatWest) and was presented with a prompt asking if I’d like to add other bank accounts into the same app so I could see all balances at once. Thinking this was some sort of witchcraft, I followed the process and lo and behold, my personal banking (Nationwide) was listed too, with a balance. At the time, I thought “well, that’s handy” – obviously only one spot to check now rather than two – but didn’t think much more about it.
However, it has huge implications for the betting and gaming sector, offline and online, in the area of affordability checks. I spoke with Michael Byrne from the Department of Trust about how this impacts operators’ ability to run these checks. Michael told me: “We’ve developed our product, BetBudget, to be as user-friendly as possible. The customer just downloads the app or goes through the equivalent process logging in via the web. They link their banking to the app – and they’re all set. The beauty of the system is that you only have to set up once and you can then allow access to any betting provider that’s affiliated.”
I looked a little deeper into the actual nuts and bolts of how the whole system works and it’s pretty intuitive. The basic principle is dead simple – allow BetBudget access to all your banking in one go, so a clear picture of your finances and what you can afford can be built up. Then, as a customer, whenever an operator needs information from you, they send a request and you authorise it on your phone if you’re comfortable.
There are various levels of access that operators can request, depending on what they’re trying to verify and how big a player is – and perhaps depending on what trigger levels eventually emerge after consultation is complete and the new law steams into view. With my offline operator hat on, the possibilities are pretty exciting.
They’re the most exciting for, for example, casino shift managers who now spend an inordinate amount of time chasing players for bank statements, payslips (that aren’t forged), company details and so on. The concept that all that could just be replaced by an app where you’ve direct access to the real numbers behind the paperwork is very enticing. That’s a ton of work off those guys’ desks and it also would massively reduce the amount of people who simply stop visiting because of these requests.
A lot of focus on affordability is around people who genuinely are playing beyond their means or wish to hide their incomes, but we shouldn’t underestimate how many potential customers simply can’t be bothered to participate in the process and go and do something else with their time instead. Clicking an “authorise” button on an app sounds like a whole lot less hassle than sitting down with your paperwork for what feels like an interrogation – from every operator you’d like to frequent.
I also asked Michael about the minimal level of commitment required to download an app – surely that is something of a barrier to some potential players. He told me “not all operators want to have people download the app – some will have a separate re-skinned landing page, developed by us, so the player stays within the comforts of the website they’re used to”.
The authorisation to run searches that is set up via open banking doesn’t affect a player’s credit record at all: it’s a totally different process. Clearly something has to change in the world of affordability, from two perspectives. The industry can’t go on with flimsy self-certificated questionnaires and some of the stories of spend levels without even a question being asked don’t paint the industry in a good light.
I think that’s all generally accepted, but at the same time the amount of resource needed to manually gather, verify and archive multiple pieces of paperwork is bordering on ludicrous – and a huge number of players are put off by the effort required. Giving operators effectively direct access to the subset of your financial background, that they need to give you the thumbs up, saves an eternity of time for the operator and a fair bit for the player; so this tech is one to watch. Around 500 UK offline casino managers will, one day soon, be eternally thankful for what the Department of Trust, alongside other payments technology suppliers, is doing.
