Ministerial statement: Paving the way for commercial pensions dashboards

The Minister for Pensions, Emma Reynolds MP, recently reaffirmed the Government’s commitment to delivering pensions dashboards in a written statement to parliament.

The statement outlined:

• The Pensions Dashboard Programme’s (PDP) forward momentum and increased confidence in its ability to deliver against its existing timetable

• That the Government’s MoneyHelper pensions dashboard will be available to the public before commercial dashboards are launched

• That launching the MoneyHelper dashboard first will give insights into consumer behaviour and usage to facilitate the launch of commercial dashboards

What the Ministerial Statement means for Commercial Dashboards

Encouragingly, the statement reiterated the Government’s support for multiple pensions dashboards, confirming that commercial dashboards will be a reality. Paving the way via the Government's MoneyHelper dashboard in the first instance adds certainty to the implementation of multiple dashboards, and to the fact that forward-thinking providers should have plans to launch their own dashboard underway.

Why are commercial dashboards so important?

The aim of pensions dashboards is to help millions of everyday consumers engage with their retirement savings and achieve a healthier financial future. The MoneyHelper dashboard is a great first step, but commercial dashboards are where we will see the majority of engagement.

In Norway, for example, where dashboards have been live for a decade, a whopping 95% of requests are made via commercial pensions dashboards - just 5% via the Government service.

With almost 40% of UK adults not saving enough to be on track to afford the minimum level of the Pensions and Lifetime Savings Association’s (PLSA) Retirement Living Standards, dashboards can’t come soon enough, to bring visibility to inadequacy in the UK.

What is Moneyhub doing?

PDP has said it is “working on a pathway for the implementation of commercial dashboards, working closely with potential dashboard providers, the MoneyHelper Pensions Dashboards team, the Department for Work and Pensions (DWP) and regulators”.

As a founding member of the Pensions Dashboard Operators Coalition (PDOC) which represents 14 potential commercial dashboard firms, Moneyhub is at the centre of this implementation planning work with the Government. Other forward thinking firms also have the chance to influence this by working with PDOC and joining leading providers like Aviva Legal & General, Mercer, Standard Life and Scottish Widows.

As a business, we are leading the way in dashboard development - already building our own commercial dashboard and undergoing thorough consumer testing. Firms like Legal & General and Standard Life have chosen to take advantage of our progress and partner with us to deliver their own dashboards. 

Our three-phased approach takes you from preparing to submit your FCA Variation of Permissions and configuring initial Post View Services through to connecting to the Central Digital Architecture, technical  deployment and executing your take-to-market plan.

We have already appointed RSM as our QPDS auditor and are looking forward to working closely with them as we explore the complexities of the technical breadth of the standards, and equip our partners with as much knowledge of the process as possible.

We’ll also be supporting the team at MoneyHelper to help them successfully pass their own 14 point ‘audit’ (i.e. the CDDO SSA*) to get them up and running 

* This is the beta Service Standard Assessment (SSA) carried out by the Central Digital and Data Office (CDDO) for all Government online services before they can be launched.  There are 14 points in the Service Standard against which CDDO assesses services.  The MoneyHelper alpha SSA report, from July 2024, is here.

It’s very clear that consumers want to see their pensions together on apps from brands they trust, and those that can add additional value on top, which helps them make better long term financial decisions. It is essential for all that people start saving into pensions as soon as they can and enjoy the accumulation and ultimate decumulation of their long term savings. We are excited to be working closely with industry and regulators to get this technology into the hands of everyday savers as soon as possible. 

To find out more about how we can support you in delivering your own pensions dashboard to your customers, just get in touch →

Talk Money Week - Open Finance features to help your customers #TalkMoney

November 4-8th 2024 is Talk Money Week - an initiative from the Money and Pensions Service that seeks to help people have more open conversations about their money - from pocket money to pensions - and continue these conversations all year round.

Money is a deeply emotive topic, and the anxiety, guilt or shame someone might feel around their finances may mean they find it difficult to talk about. Yet research has shown that people who do talk about money make better, less risky financial decisions, feel less anxious and can help their children form good lifetime money habits.

Here’s one Moneyhub feature for each day of Talk Money Week, that can help you to help your customers start talking money:

1. Budgets, forecasts and spend analysis

2. Personal Debt Manager

3. Emergency Cash Builder

4. Benefits Finder

5. Pensions Finder

Budgets, forecasts and spend analysis

• Why is it important?

  Understanding how much money is coming in, and where it is going out is the first fundamental step towards financial wellness.

  One of the most significant sources of financial stress is not knowing if there'll be enough money left at the end of the month. As cash usage continues to decline the increased use of 'Digital' money means its harder than ever to keep track of direct debits, BNPL repayments, ad hoc bills and spending on debit, credit cards or payment services like Paypal.

• How does it work?

  Our budgeting, forecasting and analysis features make getting those healthy foundations in place as easy and intuitive as possible.

  Users are encouraged to connect all of their spending accounts to give them a complete picture of their finances. Our technology can then identify income, regular bills and payments and the spending and income analysis helps build a very tangible, visual representation of what’s going where.

  Every transaction is categorised so that the customer can create and set spending budgets for things such as fuel for the car, the weekly food shop, clothes for the kids or home repairs. No matter what account or card is used to make a payment the category is identified and allocated to the correct budget so they can see where their money goes and, when they are in danger of going over budget and take avoiding action.

Personal Debt Manager

• Why is it important?

  UK adults owe £1.9t in personal debt. Failing to keep on top of debt can impact health, wellbeing and the ability to work.

  A study from the Royal College of Psychiatrists found that half of all adults with a debt problem also live with mental ill-health. This ranged from a consistent feeling of anxiety and low mood to a diagnosed mental health condition.

  Debt can be a considerable burden, made worse by dealing with it alone.

  Worrying about debt can affect sleep. Losing out on a good night’s sleep can not only affect mood and energy levels, it can also affect someone’s ability to work or have good relationships with friends and family.

  All of these things in turn can further add to debt problems.

• How does it work?

  Our Personal Debt Manager gives your customers a suite of tools to help them check, manage and adjust their spending so they stay in control of their income and outgoings.

  We know that people get better outcomes when when:

  • They regularly check income, outgoing and bank statements, and;

  • Adjust spending on non-essentials when money is tight

  Your customers can use Personal Debt Manager to connect all of their bank accounts, credit cards and loans in one place so they can check each and every transaction in real time. They’ll benefit from a range of tools, including Personal Balance Alerts, Spending Analysis, Regular Payments and Rent Recognition.

  By utilising these tools, your customers can:

  • Gain sight of where their money is going and where changes need to be made and set realistic budgets

  • Reduce the risk of missing a repayment as they have a full list of upcoming payments to help them plan in advance

  • Even build their credit score through Rent Recognition

  Eliminating debt is about more than the numbers - debt relief brings reduced stress and anxiety, improvements in cognitive functioning and changes in decision making. When someone clears their debt, it’s a significant life event.

  With Moneyhub, you can help them get there.

Emergency Cash Builder

• Why is it important?

  Be it building an emergency cash fund for whatever life throws at them, or saving towards that all important first home, our technology can help you become a significant force for financial good in your customers’ lives.

  With the Financial Conduct Authority reporting that nearly 13m UK adults have little capacity to withstand a financial shock, helping your customers build an emergency fund to weather a financial storm, or simply for a rainy day, can improve financial outcomes, build trust in your brand and deepen the relationship they have with your firm.

• How does it work?

  Moneyhub’s Emergency Cash Builder makes it easy for your customers to increase their financial resilience in three simple steps:

  1. Personalise: Choose a connected account in which the emergency cash fund will be created and give the fund a name. It could be simply an ‘emergency fund’, or something more personal, such as ‘my holiday fund’ or ‘Mum’s 60th birthday’. Customers can create multiple funds for different goals. After naming their emergency cash fund the customer will be prompted to set a target amount and time period over which they wish to save.

  2. Monitor: Each Emergency Cash Fund will automatically appear in the customer’s personal dashboard. They’ll see how much they’ve saved in total and how close they are to achieving their goal.

  3. Celebrate: Moneyhub’s dashboard view provides a visual measure of success. Overlay a nudge in the app or any other communications channel to help the customer celebrate their achievement and provide them with an onward journey.

  Customers can transfer money to their Emergency Cash Builder fund using their bank’s banking app or by creating a standing order. Or if enabled, they can use Moneyhub Open Banking payments technology to make a payment from within a Personal Financial Management app.

  When people have some savings to fall back on, their increased financial resilience leads to reduced stress and anxiety, a greater sense of choice and control and even higher self esteem. With Moneyhub, you can help your customers get there.

Benefits Finder

• Why is it important?

  According to Policy in Practice around 8 Million households in the UK are missing out on £16-19 billion in benefits every year. This works out at around £5k per household, every year - a potential lifeline for low-income households.

  In 2021, in the wake of the Covid-19 pandemic, Welfare at a Social Distance found that the most common reason why people miss their benefits is that they are unaware of the welfare benefits they are entitled to or assume that they are not eligible

  The main reasons people are not taking up benefits they are aware of:

  • Group A: 42% Wrongly assume they are not entitled

  • Group B: 39% Unaware of the range of benefits they could be entitled to

  • Group C: 19% Don’t apply because they are overwhelmed by the process, or find the stigma difficult to deal with

• How does it work?

  Description text goes hereWe’ve embedded InBest’s Benefits Finder into our Personal Financial Management solution, enabling people to identify benefits they may be eligible for based on their financial data.

  The benefits calculator can help those in Groups A and B to find out which benefits they are eligible for and the boost to their income they could receive.

  By incorporating the calculator into a financial management app, we can better serve Group C through personalised nudges and support articles, to help guide them through their benefits applications.

Pensions Finder

• Why is it important?

  It’s no secret that the pensions industry has an engagement problem. In 2020 the Financial Conduct Authority found 59% of adults contributing to a workplace DC pension have low, or very low pension engagement.

  Low levels of engagement correspond with low levels of understanding around pensions, and people are missing out on a better retirement.

  In fact, one in five pensioners is now living in relative poverty in the UK, with the number of financially insecure pensioners soaring to more than two million.

  With the government’s work on the Pensions Dashboard Programme stalled, our Pension Finder offers an interim tool to help people track down, understand and engage with their pensions.

• How does it work?

  Pension Finder allows people to build a full picture of their pension and make crucial retirement plans by connecting the Moneyhub app with their LinkedIn profile.

  It is designed to help pension managers, workplace pension providers, trustees or advisors help their customers engage with their pensions, encourage them to save more cash for retirement and understand the long-term implications of their current financial situation and savings strategies.

  Users can combine the pensions information found by analysing their career history with other information aggregated and calculated by Moneyhub in tools such as Moneyhub’s Lifestyle Modeller, which predicts people’s financial situation after a major event such as retirement to set lifestyle expectations.

  When people have a complete financial picture they are able to make better decisions or get the help they need. The Pension Finder seeks to make financial admin easier and ultimately encourage savers to take positive steps to secure their future financial wellness.

You can offer your customers any of these features as part of our fully customisable white label financial management app, or incorporate them into your own offering as widgets.

Drive engagement and understanding with personalised video

Dynamic communication is a key driver in improving financial inclusion. That’s why we’ve integrated with Idomoo’s Next Generation Video Platform - to bring consumers’ financial data to life and create dynamic, engaging journeys you can deploy as part of our white-label platform or easy-to-implement widgets.

Why video?

In the rapidly evolving landscape of financial services, finding innovative ways to engage customers is crucial. Unlike traditional print or text-based methods, personalised videos use customer data to deliver tailored content that resonates on an individual level. And, video content is in demand from consumers.

• 93% of companies using personalised video content experience an increase in conversion rates. (EConsultancy)

• 72% of customers rate personalisation as “highly important” for financial services (Capco)

• 43% of consumers want to see more video and are more likely to pay closer attention to videos than other types of content. (Hubspot)

Videos are inherently more engaging than static content. They combine visual and auditory elements to capture attention and make complex information more digestible. Personalised videos take this a step further by delivering content that is directly relevant to the viewer. 

For example, a pension statement delivered via video can break down intricate details into simple, comprehensible segments supported by graphs and animations. Much more engaging than a stack of paperwork delivered annually through the post - customers are more likely to engage with and retain information from a video tailored specifically to their circumstances.

Improved understanding and retention

Financial services often involve complex products and legal jargon that can be daunting for customers. Personalised video content can simplify this complexity. By using clear language, visual aids, and customised examples, videos can demystify terms and conditions or explain investment options in an easily understandable way. According to studies, people retain information at a higher rate when it is presented via video compared to text alone. This improved understanding can lead to better decision-making by customers.

Personalised onboarding

One of the critical touchpoints in the customer journey is the onboarding process. A smooth onboarding experience can set the tone for a successful customer relationship. Personalised videos can make product onboarding a much more interactive experience. By guiding new customers through the features and benefits of their financial products in a personalised manner, firms can ensure that customers are more comfortable and knowledgeable from the outset. This reduces the likelihood of churn and increases customer satisfaction.

Consistent and scalable communication

Personalised videos offer a scalable way to maintain consistent communication with customers. As customer bases grow, it can become challenging for financial institutions to maintain a personalised touch. By automating the creation and delivery of personalised videos, firms can consistently provide tailored content without incurring significant additional costs. This scalability is particularly beneficial for sending recurring communications such as monthly investment statements or annual pension updates.

Foster trust and transparency

Transparency is a cornerstone of building trust in financial services. Personalised videos can enhance transparency by providing clear, concise, and directly relevant information to customers. When customers see that their financial institution is making an effort to communicate complex information clearly and is willing to personalise content to meet their needs, it builds trust and strengthens the relationship.

Communicating via personalised videos can also aid in meeting Consumer Duty requirements, as it offers a measurable way to ensure customers understand the products and services on offer.

Use case: Mercer Money

We partnered with Idomoo’s Next Generation Video Platform to roll out personalised pension statement videos on Mercer Money.

The new integration sends users dynamic, personalised videos that explain their personal pension statements in an easily digestible manner. These videos highlight key information, such as current pension balance, projected retirement income, and recent contributions.

“The quality of the development and product we get from Moneyhub has been, and continues to be, extremely high. Our mission is to enhance our Mercer Master Trust clients’ financial wellness programs, particularly in engaging employees with their entire financial world, including pensions. Moneyhub’s exceptional service, Open Finance technology and truly collaborative approach consistently ensure our product is the best in market.

As we continue our journey to equip Mercer Master Trust members to achieve the best possible pension savings outcomes, Moneyhub's commitment and cutting-edge solutions remain integral to our success" - Tim Adams, Head of Digital, Mercer

If you’d like to find out more about how we can help you implement personalised, data-driven videos, just get in touch →

Price and Value in the Era of Consumer Duty

On 18th September, the Financial Conduct Authority (FCA) published a Price and Value Outcome: Good and Poor Practice update.

The Price and Value is one of the four outcomes that the Consumer Duty is centred around. Consumer Duty is the FCA’s response to the four key consumer harms:

1. Consumers buy the wrong products or products that are too risky = Products & Service outcome

2. Consumers incur greater monetary and non-monetary costs (e.g. time, stress and missed opportunities) = Price & Value outcome

3.  Consumers find it hard to make decisions or fail to make timely decisions = Consumer Understanding outcome

4. Consumers find it hard to switch/transfer to get better deals = Consumer Support outcome

The FCA’s update collates insights from the first year of the implementation of the price and value outcome and looks to help firms improve the way they think about fair value assessments.

The FCA’s key messages to firms

1. Be clear for whom products and services are designed for - it is key that firms identify groups of customers outside of target, or groups within target getting worse outcomes than other customers

2. Firms must do more to identify and adjust to vulnerable customers' needs and ensure they get the same outcomes as non-vulnerable customers

3. Firms must focus on outcomes (not processes) in the context of the product - what are the foreseeable harms that use or misuse of a product might bring?

4. Be data led - firms must find and use new sources of data to do all of the above and not rely on historic measures

What do firms need to consider in their approach to Consumer Duty compliance?

- Business Model risk: Are your  profits sustainable or do they rely on inertia, legacy pricing, or lack of transparency?

- Customer risk: Do you serve niche groups of customers with complex needs or who are vulnerable?

- Product risk: Are your products inherently complex or do they have features that are outside of the market norm?

How do the FCA’s Consumer Duty rules define 'fair value' for e-money and payment institutions, and what are the implications for these firms?

The FCA has been clear that Consumer Duty rules are not about setting prices, requiring prices to be low or that firms charge the same as competitors. But, firms are required to consider price when assessing whether they are providing fair value, and take action if not

Firms should be evidencing data and metrics to ensure that the price a customer pays is reasonable compared to the benefits they receive, with the ability to justify any pricing outside of the market norm, e.g. premium pricing with evidence of access to (and usage of) additional features and benefits.

Additionally, the FCA stresses that each outcome should be looked at holistically, within the context of the other outcomes and the rest of Consumer Duty. If your product meets all elements of the Duty, it likely offers fair value.

What should payments and e-money firms follow to ensure their customer communications meet the requirements?

The FCA had laid out specific expectations it has on hope firms approach meeting Consumer Duty requirements, including: 

• Defining and documenting outcomes specific to each firm’s business model

• Tracking customers who fall outside of the target market and implementing outreach or intervention measures

• Improving the way firms capture and record information about customer vulnerabilities to better meet customer needs by adopting a ‘Tell Us Once’ approach

• Be proactive with communications - reach out to customers to inform them of more suitable products may be available and measure the impact of those communications

• Get good at benchmarking - be clear on and assess comparable firms and products

• Take action when adverse outcomes are identified, and demonstrate how you evaluate the effectiveness of the action

• Show an understanding of what customers think and how firms are seeing products bought and understood in the market through solid data and credible evidence

What’s next?

In the report, the FCA states that they will focus thematic price and value outcome work across sectors. It has already reported on General Insurance, has an ongoing review of Guaranteed Asset Protection insurance commissions and has announced a review of the pure protection market, again with a focus on commissions payable.

Justifying remuneration/charges is clearly a theme moving forward for the FCA, especially where those fees are invisible to the end consumer. The key to justification will be solid evidence built on data.

To find out how our technology can help you drive better outcomes for your customers and evidence Consumer Duty compliance, just get in touch →

Thinking Pensions Dashboard? Think Open Banking payments too!

What is a Pensions Dashboard and why do consumers need them?

Typically, workers will have an average of 12 roles throughout their career, and that’s expected to continue to increase. Research has shown that people under 24 have approximately 3.8 more job changes than people who are over 45. That means the workforce of today already has  multiple pensions – both workplace and private – plus their state pension. But it also means they’re quite likely to have lost track of them. And with the introduction of auto enrolment some people may not even realise they have a pension through their employer!

That’s where the Moneyhub Pensions Dashboard comes in! The aim of this unique Open Finance tool is to help people feel more in control of their pension pots by understanding how much they’re saving for retirement. As Alastair Reed, Principal Policy Adviser, Money at Which? explained during a Moneyhub webinar: “While consumers may not need to check their pension dashboard daily, it is essential to review it at crucial life moments and when approaching retirement. Pensions Dashboards can encourage better decision-making, such as when to access pension funds and whether to seek advice or guidance. By providing a clearer picture of their pension assets, consumers can make more informed choices and better prepare for their retirement years.”

On top of that, there’s a commercial opportunity for pension providers, banks and building societies to make it more straightforward for consumers to make additional payments when their funds allow. How? Outside of, but potentially alongside, the FCA-regulated Dashboards environment, Open Banking payments provide a friction-free, more secure money transfer option.

What do consumers want from a Pensions Dashboard?

There has been lots of research into what consumers are looking for when it comes to a Pensions Dashboard. Broadly, they’re excited about the potential of  this new financial tool:

“I’d be really excited about a tool like this where you can see all your pensions together. It would make my life easier. So many people are just in denial about their pensions – they don’t even think about, let alone look at, their pensions.”
Female, 50 years old, Moneyhub research May 2023

"I know I've got 2-3 pensions that I paid into when I was self employed, that I don't know how much I've got in there. And I've got one with work. So, I don't know what my total thing is, I really don't. I don't know where to go for everything together."
Male, 55 years old, Moneyhub research May 2023

Specifically, they want:

• To be able to see all their pensions in one place.

• Access to key information such as total monthly income (TMI)  that they might receive in retirement across different pensions.

• Security, simplicity, and support.

Read our blog posts to learn more: 

What do consumers want and expect from Pensions Dashboards? Part 1
What do consumers want and expect from Pensions Dashboards? Part 2

Moneyhub can help you create your white-labelled Pensions Dashboard and more

Developing a Pensions Dashboard requires access to multiple data points and compliance with several complex regulations from different Government and Regulatory bodies. In many cases, companies seeking to launch a Pensions Dashboard are turning to Moneyhub to help them build a robust, compliant yet user-friendly option, both quickly and efficiently. Outsourcing the design and development process to a Technical Services Provider like Moneyhub can be a smart move. Here are some key reasons why:

• Tried and tested: We’ve already done extensive usability research with real people, looking at how they interact with and understand the dashboard interface. This ensures our dashboard provides a consistent and seamless experience for users. 

• Expert team: We are an Alpha Partner to the Pensions Dashboards Programme, and members of our team are members of the PDP Steering Group and have even contributed towards the development of the standards.

• Efficiency: By outsourcing the design and development process to Moneyhub we can get you to market quicker. We offer a more streamlined, efficient, and cost-effective approach, as we already have the infrastructure, knowledge, and resources in place to ensure compliance with the PDP Data and Design Standards.

• Security and compliance: The protection of users' personal and pension data is imperative. We’re one step ahead, with our experience in the financial services industry enabling us to implement robust security measures and adhere to privacy regulations.

If you’re currently weighing up whether to develop your own dashboard or partner with a provider like Moneyhub, take a look at our blog outlining the factors you’ll need to consider: Pensions dashboards: Build or Buy?

You get access to our Open Banking payments expertise

By working with Moneyhub on your dashboard, you’ll also gain access to our expert Payments Team. Outside of, but potentially alongside your dashboard, Open Banking payments capabilities could allow you to stand out from the crowd in what is expected to be a big set of commercial Pensions Dashboard providers. One of the key goals of Pensions Dashboards is to improve consumers’ financial wellbeing. Outside of the regulated Pensions Dashboard environment, this could be further boosted by making it easier for customers to make additional contributions through Open Banking payments.

If consumers find themselves able to pay more into a personal pension than they had expected, whether as a one-off payment or by regular payments into their pension pot as they approach retirement, Open Banking technology can allow them to make those payments seamlessly and securely.

Get in touch to find out how we can help you build a white-labelled Pensions Dashboard and associated Open Banking payments to meet all of your customers’ needs. Contact Moneyhub

Banking Innovation: The 5-Step Approach

How are traditional banks holding up against fintech disruptors like Monzo and Starling? The answer may not surprise you. But, while neo and challenger banks have revolutionised the customer experience, traditional banks are very much still in the game.

In our latest guide, Taking on Neo Banks: Your 5-Step Guide to Innovating in Banking, Jon Hart, Moneyhub API Partnerships Director, reveals how banks can overcome legacy challenges and embrace modern innovation. Here’s a sneak peek into the guide's key insights:

Overcoming Legacy Challenges

Traditional banks often face numerous hurdles when driving innovation, rooted mainly in the following:

• Legacy attitudes: Long-standing beliefs about customer loyalty and in-house tech development.

• Legacy technology: Outdated systems creating technical debt.

• Legacy thinking: A product-first mindset.

Neo banks, unaffected by these constraints, can innovate rapidly, offering seamless, customer-centric experiences that traditional banks struggle to match. However, all is not lost for incumbents.

Shifting to a Customer-First Approach

Today's digitally savvy customers demand real-time, personalised interactions. Transforming from a product-first to a customer-first approach is not just beneficial - it's essential. This means deeply understanding customer needs and preferences to deliver services that genuinely enhance their financial lives.

Leveraging Innovation Labs

Many banks are turning to Innovation Labs to pilot new ideas swiftly and cost-effectively. Key success strategies include:

• Staying Lean: Fail fast, cheaply, and often while learning continuously.

• Defining Success: Establish clear, measurable success criteria upfront.

• Ensuring Adoption: Maintain strong stakeholder management and executive buy-in to transition successful pilots to full-scale adoption.

Partnering with Fintechs

Strategic partnerships with fintech companies can inject the agility and innovation necessary to overcome legacy resistance. These partnerships allow banks to enhance customer experiences and drive innovation at a previously unattainable pace.

Implementing Digital Engagement Layers

Legacy technology often hinders innovation. However, digital engagement layers can bridge these gaps by offering modern, enhanced customer experiences on top of outdated core systems. This approach allows banks to innovate rapidly without extensive overhauls.

Unlock New Possibilities Today

Innovation is crucial for traditional banks to meet customer expectations and remain competitive. Banks can accelerate their innovation journeys by addressing legacy challenges, forging fintech partnerships, and adopting a customer-first mindset.

Ready to Innovate?

Discover actionable strategies and detailed steps to drive innovation in financial services. Download Jon Hart's complete guide to dive deeper into these transformative insights.

Download the guide

What does financial wellness actually mean?

We talk a lot about financial wellness at Moneyhub. But what does it actually mean? Finances are multifaceted and personal to every individual - there’s no clear definition for what ‘good’ or ‘well’ looks like.

Recognising this, we polled 1,000 UK consumers to find out what financial wellness means to them. Here’s what we found:

Top responses across all respondents

It is clear that financial wellness means different things to different people, with our survey showing some marked differences between different life stages.

What does financial wellness mean to you? A deep dive into generational differences

• Age 25-34 - “Understanding finances and making the right decisions” (29%)

• Age 35-44 – “I have enough disposable income”, “I can copy with a financial emergency” and “I have a plan for my retirement” (all 23%)

• Age 45-54 – “I have a plan for my retirement” and “I have complete control over my finances” (both 26%)

• Age 55-64 – “I have enough disposable income” (39%)

• Age 65+ – “I have enough disposable income” (39%)

This demonstrates the difference in financial drivers for consumers – drivers that providers must be able to identify, interpret and engage consumers with along their journey. As life stages and requirements evolve, so too should the experiences and services offered. Fail to align, and consumers will happily vote with their wallets, off to a competitor who meets their needs.

If a younger customer is not financially well, and struggling to get through the short-term, it’s highly unlikely they will engage with – or contribute more to – their pension, or add investments into the mix. 

Once someone is on top of their day-to-day finances and has built up a rainy day fund to fall back on, their saving and investing potential is increased. In return, this can drive customer primacy for providers – gaining the ownership of a deeper, data-rich relationship so that consumers' needn't turn anywhere else. 

The role of Open Finance in enhancing financial wellness

Open Finance platforms, such as Moneyhub, play a crucial role in helping financial services firms serve their customers through all life stages, enhancing their financial wellness journey. Here’s how:

1. Comprehensive Financial Insights: By aggregating financial data into a single, accessible platform, consumers gain holistic view of their finances. This comprehensive insight allows financial services firms to offer tailored advice and solutions that align with the unique needs of their clients, whether they are focused on saving, investing, or managing daily spending.

2. Personalised Financial Guidance: The ability of Open Finance platforms to analyse financial data in real-time enables the provision of personalised financial guidance. This means firms can proactively assist clients in achieving their financial goals, such as building an emergency fund, planning for retirement, or managing debt effectively.

3. Enhanced Customer Engagement: Through intuitive and user-friendly interfaces, Open Finance platforms engage customers more deeply with their financial health, so they needn’t flit between apps. Features such as budgeting tools, spending insights, and goal tracking foster a proactive approach to financial management, encouraging better financial habits and decisions across different life stages.

4. Data-Driven Decisions: Financial services firms can leverage the rich data provided by platforms like Moneyhub to gain a deeper understanding of their clients' needs and behaviours. This data-driven approach leads to the development of more relevant financial products and services that resonate with customers, thereby fostering stronger, long-term relationships.

As the definition of financial wellness evolves across different demographics, so too must the strategies employed by financial services firms. By harnessing the capabilities of Open Finance platforms like Moneyhub, firms can ensure they provide the personalised, insightful, and engaging services that meet the ever-changing needs of their clients, all within one solution.

If you’d like to find out more about what Open Finance can do for your business, and your customers, just get in touch →

Monzo and the pensions revolution

Monzo, the UK challenger bank, has been a key player in the fintech space and encouraged  wide adoption of Open Banking from Gen Z and Millennials. It recognised consumers’ desire for an intuitive, digital solution that enables them to manage all of their finances in one place - offering account aggregation, categorisation, and credit scoring through their Monzo Plus solution.

After its plans to move into the pensions market went public in 2023, Monzo has announced it will be launching a new pension consolidation solution that finds users’ pension pots and brings them into one fund, accessible through the Monzo app.

The announcement comes as Monzo’s research revealed that 51% of UK adults don’t know how much they have saved for retirement. It asked 2,000 people what would make engaging with their pension easier, and 38 per cent said a process that felt more accessible to manage alongside their everyday finances.

Pensions engagement in the UK

Earlier this year, we conducted our own research into consumer attitudes towards their pension and investment providers. We found that:

• 36% of 35-44 year olds said too little information from their providers was putting them off adding to their pension or investments

• 2 in 5 (42%) of all consumers say they don’t find it easy to interact with their providers

• 4 in 5 (79%) consumers “could save more money” if they had one app to view and manage all their banks accounts and financial products

And this lack of engagement is having a detrimental effect on financial health. Recent research has shown that around 88% of individuals with workplace pensions have at least one pension that remains unclaimed and there is an estimated £26.6bn of lost pension pots in total and nearly 1 million pensioners in the UK are living in poverty. 

The power of ‘all in one place’

A holistic approach can lead to better outcomes, and it begins with aggregation. Bringing pension pots together helps people understand their true financial position, and answer important questions like “will I have enough?” or “when can I retire?”. It also helps people make better informed decisions based on the performance of their pensions, both financially and ethically, and explore options such as consolidation. 

At Moneyhub we would go one step further and bring other investments such as savings, shares and even property into that view. Quite often people will take a lump sum earlier than or draw down faster than they need to when they have other options open to them. 

Monzo’s solution reflects what we are seeing from major players within the pensions industry; pensions are one piece of the puzzle, and need to be understood in the wider context of someone’s financial world. 

Providers such as Mercer, Standard Life and Scottish Widows are taking a proactive approach to helping members engage with their pensions and understand what they have, and what they might need for a comfortable retirement. By using Open Finance to position pensions alongside daily spending, savings, investments, properties and all other financial accounts, these firms are increasing engagement and enabling better financial futures for their members.

The future of pensions and Open Finance

Monzo’s announcement came hot on the heels of the King’s Speech (17 July 2024) in which it was announced that the Government will bring forward the Digital Information and Smart Data Bill, as well as a Pensions Scheme Bill.

Paving the way for Open Finance legislation, the Smart Data Bill seeks to set a clear framework for consent-driven data sharing, offering new opportunities for innovation to firms, and improved transparency, products and services to consumers - meaning there’s plenty of scope for further pensions transformation, through pensions dashboards and beyond.

If you’d like to find out more about what Open Finance can do for your business, and your customers, just get in touch →

The difference between Open Banking, Open Finance and Open Data

In the world of financial data, there are three key components — Open Banking, Open Finance and Open Data. These three concepts are shaping the industry’s future, with data driving the way toward transparency and holistic views. Using data in a secure, compliant, privacy-centric and authenticated way delivers significant benefits for all in the financial ecosystem, including businesses and their customers.

So, what do these terms mean, and why are they critical to shaping the future of fintech?

What is Open Banking?

Open Banking describes a process where users consent to share their banking data and transactions with third parties. It’s becoming more popular because it allows faster, more secure transactions. Open Banking democratises finance with easier access. It’s also a more mature concept with a framework for regulatory oversight.

Typically, this exchange happens through secure APIs (application programming interfaces). Some examples of it include:

• Building self-service customer portals

• Providing more payment options

• Accelerating the opening of new accounts

• Aggregating all accounts into one view

• Enabling instant credit checks

• Simplifying access to spending habits and other data

What is Open Finance?

Open Finance is a data-sharing model where people provide financial data from banking and other sources with third parties. Open Finance extends beyond banking and bank-based payments to pensions, investments, mortgages and other loans.

In this scenario, consumers own and control their data at all times. It’s customer-consent-centric, which means the data is authenticated and validated. Ultimately, it’s a win-win for all because access to more information drives better financial decisions. Open Finance doesn’t have regulatory guidelines as of yet.

Some examples of Open Finance include:

• Tailoring and personalising added-value products for consumers

• Improved accessibility and affordability around credit worthiness

• Gaining easy retrieval of one’s historical transaction data

These possibilities recognise that a person’s financial footprint is much larger than banking relationships, extending to their investment activity and more.

What is Open Data?

Open Data is the sharing of data by consumers with companies to receive the most cost-effective and personalised products and services. With Open Data, a holistic view of financial data includes more than traditional sources. Digitisation and contactless payments, although convenient, create distance between people and their full financial data. Open Data helps them reconnect.

Open Data is unique and full of potential because it’s consumer-centric, offering them convenience and better solutions.

Here are two examples of how this could work:

A customer shares data with a lender to demonstrate credit worthiness.

• The data can include many components like payments and non-financial information like their LinkedIn employment history profile. 

• The bank then has more context and can approve applications with less work. 

A customer wants to buy a new car but isn’t sure which one.

• The buyer can make a decision based on their full scope of data, including driving data, where they live and their financial picture. 

• These inputs then go through machine learning algorithms, resulting in car recommendations to suit their needs which options of where to buy them

The value of Open Data: empowering consumers and businesses

There is great value in the adoption of Open Data for all parties. This framework grows the data set to deliver more precise results, like the lender approval example. For consumers, their financial picture and well-being could be out of reach because they don’t have the whole picture.

With the adoption of this approach and the technology to support it, the benefits are massive.

Consumer benefits:

• One dashboard that aggregates all financial and non-financial accounts

• Highly personalised and tailored offerings

• Insights on how to reduce spending and save money

• Easily moving savings to other products for higher returns

• Eliminating having to give personal information over and over

• Paperless services

• Greater oversight of all one’s income and expenses

• Faster lending application approvals

Banking and lender benefits:

• Accessible, holistic client view to make credit and lending decisions

• Ability to segment clients into relevant and specific marketing campaigns

• Leveraging hyper-personalisation as a competitive advantage

• Greater potential for revenue-focused partnerships

• Streamlining costs and resources across the enterprise

• Acceleration of time to market for new offerings

Third-party provider benefits:

• Easier access to customers and prospective ones

• Complete data profiles that can drive product development

• More opportunities to partner with banks and other third parties

• Faster and more secure transactions

The challenges surrounding Open Banking, Open Finance and Open Data

Moving toward an open world certainly has many positives, yet challenges persist.

A top concern and barrier involve security. Consumers and businesses all have a greater awareness of cyber risk. There’s misinformation and misconceptions that cloud this topic. Regulations and sophisticated technology are in place to protect this. Nothing is 100% in data security, with the regulatory arm still catching up to innovation and the evolving role of data.

The second concern is privacy, which is somewhat different from security. There’s a push-pull here. Research says 83% of consumers are willing to share data to get more personalised experiences. On the other hand, they may have concerns about privacy and what companies do with their data.

Other issues relate to how a company can leverage it to drive results. First, you’ll need a technology platform built on Open Banking, Open Finance and Open Data. The tools that will provide this include:

• Data enrichment to clean, categorise and enhance raw data, then convert it to intelligence for you and your customers

• Machine learning algorithms for automated, easy, scalable and accurate categorisation

Overcoming the challenges together

These challenges no longer have to hold you back from moving toward open adoption. With Moneyhub APIs, you can build a secure, compliant, high-quality data ecosystem that can enrich and categorise. Our solutions for Open Banking, Open Finance and Open Data enable businesses to transform data into personalised digital experiences. It’s a fully customisable platform.

Where to go from here

Moneyhub goes beyond Open Banking to give you the full outlook of financial data, improving your products and your customers’ experiences.

Get in touch to discuss how you can use our APIs: Book a call with our team.

How do we measure financial wellness?

We’ve made it our mission to work with our clients to improve the financial wellness of their customers. But how do we measure the impact of our technology on people’s financial health?

We can make inferences from some data points - accounts connected, savings goals set, use of budgeting tools or our pension finder, number of regular logins and more - but we’ve found that the best way to find out how our platform is impacting our users, is to ask them.

After 3 months of using our technology…

84% of Moneyhub users told us that they feel they had better control of their finances

70% of users said they feel they have got better at saving/and or investing

68% said the Moneyhub app has helped them to better understand what they currently have for their retirement, and how much they need

Open Finance has the potential to transform how people interact with their finances for the better. We’re proud to be unlocking that potential for a happier, healthier, wealthier future for all.

If you’d like to find out more about how to improve your customers’ financial wellness, increasing their capacity to save, spend or invest with you, just get in touch →

How financial services can lower consumer carbon footprints

The world is burning. Can tech and Financial Services help solve the problem?

The effects of climate change will be all too clear in years to come, from record-breaking temperatures all over the globe to devastating floods and increasingly frequent freak weather events. It seems like every year, there is a different “once in 100-year event.” Luckily, we are the first generation that has a chance of doing something about it. So why aren’t we all clambering over each other to reduce carbon emissions, slow down, and stop climate change?

Well, where would you even begin?

Open opportunities

Open Finance is revolutionising how consumers access personalised financial services, but have you ever considered how this information can help the environment?

How people use their money can have wide-ranging impacts on the environment, both positive and negative. Some of these impacts are very familiar, while others are less obvious.

Day-to-day spending

Most people know that where they spend their money has an impact on the environment. We know that driving a diesel car creates more CO2 than charging an electric vehicle or that a vegan diet has a lower environmental impact than a meat-eating diet. However, there are limited examples like these, and they are relative comparisons. What difference does it actually make? How many trees would you need to plant to offset your carbon footprint?

By enriching Open banking transactional data with Carbon Analysis data, you can provide your customers with detailed insights into how each transaction contributes to their carbon footprint. This information can be presented in terms that resonate with people's thoughts about environmental impact. Hints and tips can also be provided to inform customers about how they can take simple steps to reduce their carbon footprint today and what impact this will have in the future.

This transparent, personalised data can empower consumers to make more sustainable choices daily. When consumers can see the carbon impact of their spending in real-time, backed by actionable insights and alternatives, it can radically shift their perceptions and habits.

A great example of how this can be used for bigger decisions is in car finance. It is already hugely beneficial to use Open Banking data to check affordability before approving a loan, so let’s assume the customer has already consented to share their Open Banking data with you. How amazing would it be if you could tell them the current CO2 impact of all the money they have spent on fuel over the last 12 months and how much lower that could be if they switch to using an EV or hybrid?

If people could see the impact that one decision could have, I have no doubt that the adoption of electric vehicles would increase.

The government are putting more pressure on companies to reduce their carbon footprints and phasing out fossil-fuelled vehicles, so why not help tackle both?

Investments and pensions

An area of carbon impact people are less aware of is the impact on how their money is invested. Where your investments and pensions are invested can have a huge impact on the environment, and making simple changes can have a profound effect.

“Research shows that over 75% of UK investors want their investments to have a positive impact.” - Josh Gregory, CEO & Founder, Sugi

But with so few people being engaged with their pensions and even fewer knowing the details about funds and holdings, how can we help make that positive change?

Moneyhub has partnered with Sugi to use the Open Finance investment and pension data to provide consumers with valuable insight into the carbon footprint of their investments and pensions. Once they have this information, greener alternative options can be provided, along with information on the positive impact of those changes. Often, making a positive change to where your money is invested can have a considerably larger impact than becoming a vegan or turning the tap off whilst you brush your teeth, and yet no one seems to be aware of that.

Why should I care, and what can I do?

As awareness of environmental issues continues to grow, financial services businesses are at an intersection of technological innovation and rising consumer expectations. Consumers are not only more environmentally conscious but also increasingly want to use brands that align with their values - 88% want brands to help them live more sustainably. Financial services have a unique opportunity to leverage Open Banking to significantly impact consumer carbon footprints while aligning with their own sustainability values and missions.

Moneyhub’s API recipe, Carbon Counter, shows you how you can leverage Open Banking data and enrich it with carbon data from Moneyhub’s partners, Cogo or Connect Earth, to engage with your customers in a much deeper and meaningful way to demonstrate your commitment to helping protect the environment and reduce everyone’s carbon footprint.

If you’re interested in learning about how you can provide more personalised and environmentally friendly experiences for your customers, take a look at our Carbon Counter recipe here, or use the form below to book a call with our team.

How to support your employees' financial wellness

Employees are a business’ most crucial asset. The relationship between employee well-being and financial health is well-established, as is its wider impact on productivity, satisfaction and retention.

• Money is the biggest source of stress in the UK: one in eight employees are in working poverty [source]

• Financially stressed employees are twice as likely to leave. [source]

• Employees who are financially stressed are twice as likely to report poor health overall and take twice as many sick days, thereby impacting their productivity and overall team performance. [source]

• Employees struggling with their finances are nine times more likely to have troubled relationships with co-workers, and are twice as likely to be searching for a new job, leading to increased HR and training burdens for employers. [source]

In light of all this, and the cost of living crisis, financial wellness is being pushed up the business agenda, but is still the least common area covered in HR strategies.

Almost 80% of employees are not satisfied with the efforts of their employer when it comes to managing their finances [source]

Why should you incorporate financial wellness into your employer strategy?

There are huge business benefits to delivering financial wellness to your employees:

• 83% of employers noticed an improvement in worker performance when financial wellness programs were implemented, and 81% noted increased employee satisfaction. [source]

• Employees who are financially secure are engaged, healthier, and more productive. A decrease in financial stress leads to lower turnover rates, with 60% of employees more likely to stick with an employer that offers a financial wellness programme. [source]

• 76% of employees state they would be attracted to another company that they perceive cares more about their financial wellbeing [source]

How should you incorporate financial wellness into your employer strategy?

We’ve developed the Moneyhub Multibuy Plan to make it easy for you to offer your employees a practical tool aimed at supporting their financial wellness.

What is the Moneyhub MultiBuy Plan?

Employers can now bulk purchase licences to our award-winning financial wellness consumer app. 

Your employees will sign up via a dedicated sign-up page that is in line with your branding. They’ll then be directed to simply download the app from the Apple Store or Google Play after registering.

The Moneyhub app’s entire user-interface (UI), logos, colours and typography will automatically update to your branding, to ensure you retain ownership of the relationship and consistency of experience.

We can roll out the access in as little as one week, making it fast and easy to incorporate financial wellness into your HR strategy so you can start reaping the rewards of a happier, more productive workforce, increased retention and attracting more top talent.

About the app

The Moneyhub app gives people unrivalled clarity over their financial world by offering them a clear 360° view of their finances.

Employees can connect bank accounts, credit cards, savings, pensions, investments, mortgages, assets and more. It provides personalised savings suggestions, offers and relevant services linked to the individual’s life stage and circumstances.

84% of Moneyhub users told us that after 3 months of using our app, they felt they had better control of their finances

Apps like Moneyhub offer employers a straightforward, intuitive way to help their employees understand, manage and improve their financial health.

They provide more continuation than money management workshops (although both work fantastically in conjunction with each other), and are available whenever, and wherever your employees wish to use them.

If you’re interesting in finding out more about how we can help you support your employees’ financial wellness, learn more about our Multibuy Plan here, or book a demo using the form below

A summary of our response to the FCA Consultation CP24/4 on Pensions Dashboards

We are pleased to share a summary of our feedback in response to the Financial Conduct Authority's (FCA) further consultation on the regulatory framework for pensions dashboard service (PDS) firms (CP24/4). Our feedback underscores our commitment to improving the pensions landscape for consumers and exemplifies our ongoing engagement with key stakeholders.

Aligning with Draft Perimeter Guidance

We are pleased to confirm that the Draft Perimeter Guidance (PERG) aligns well with our expectations and supports the primary delivery models envisioned by Moneyhub, which we have actively discussed in prior consultations with the FCA. This alignment is particularly seen in FCA’s Illustrative scenarios 1 & 2, which reflect the operational blueprints that we believe will best serve the market’s needs.

Advocating for Consumer Control through Choice Architecture

In the spirit of enhancing consumer empowerment, we recognise the potential benefits of the proposed Choice menu architecture. However, we stress the importance of thorough consumer testing of screen and app designs by prospective PDS firms. We propose that the final FCA Handbook Rules maintain enough flexibility, allowing firms to effectively balance consumer ease of use with necessary consumer and data protection controls.

Addressing Post-Launch Regulatory Adaptability

Based on the universal experiences from European pensions dashboards, we highly recommend an adaptable approach post-launch. Recognising the importance of continual evolution through feedback, Moneyhub urges the DWP, FCA and MaPS PDP to embrace regular updates to their respective Regulations, Handbook Rules and Standards respectively.

The Critical Need for Pace

We are concerned about the delayed timelines for publishing finalised PDS Handbook text and subsequently opening the PDS authorisations gateway. It’s clear from international implementations, especially from Norway, that consumers need and want to use commercial pensions dashboards as soon as possible. 

Working with the other member firms in the newly formed Dashboard Operators Coalition (DOC), Moneyhub is aiming to collaborate with the DWP, FCA and MaPS PDP to help bring a number of pensions dashboards to UK consumers as soon as possible.  A key start in this process is the DOC’s 8 Step Pathway to a Flourishing Dashboards Universe policy paper developed in April 2024.

Responses to FCA's Specific questions

In further sections of our response, we address specific questions posed by the FCA:

On Perimeter Guidance: 

We are pleased to see the FCA’s Draft Perimeter Guidance (PERG) for operators of pensions dashboards.  It is as we expected and supports both the main delivery models Moneyhub envisages emerging in the market (which we have previously discussed with the FCA).

On Choices Architecture: 

The FCA’s choices menu proposals could potentially work well for consumers, but much will depend on the results of detailed consumer testing of screen / app designs by potential PDS firms, and .

We agree that a user must have knowledge of how their data will be passed on as they move between features in the pensions dashboard space. They must be able to remove that consent at any time via the centralised consent space mentioned in the design standards.

It is important that there is sufficient flexibility in the final FCA Handbook Rules to allow PDS firms to strike the right balance between friction and ease for onward customer journeys.

On Exit Communications: 

We propose streamlining communications to avoid overwhelming consumers, based on our research, which shows clear consumer understanding during entry and exit phases of PDS interactions.

Specifically, we propose the removal of the need for messaging between pensions dashboards and any contact method provided by administrators. As stated in the consultation draft, this movement out of a pensions dashboard is apparent from the context in which the link was presented. There will also be other signs, such as: a change in branding, tone of voice and many others - including a new tab or window depending on the user's settings.

We agree users should be aware when they are travelling between different areas of regulation. However, evidence shows that users are already aware of this movement.

On Delegated Access: 

We recommend postponing decisions on these until there is more clarity on the functionalities to be delivered by MaPS PDP.

We would like to encourage further regulations to provide definitive understanding of when something is mandated, and the precise details of all involved from all groups involved. This should be clearly defined vs when something is optional and which other applicable standards would be applied.

The scenario of delegated access is one - we do not yet have an understanding of the journey a user will be expected to take and so we cannot pass comment on this proposal.

On Data Export:

We want a fair, easy to understand and use solution for end users of pensions dashboards. For some that will be continuing a relationship with their existing provider. Given the guidance on messaging included in this consultation, we think the user would have the opportunity to explore other competitive options should they wish to do so.

We would like to emphasise that seeing Pensions on their own is not very helpful for most people and definitely not helpful for the people who are most likely to need a pensions dashboard in the coming years. People need to be able to see their pensions in the context of other investments and property as well as their lifestyle and spending habits. Our testing has shown that the ability to add pension data to other data sources to complete a holistic view is the most essential next step and a prerequisite to the consumer being able to get comprehensive advice and improve their overall financial wellness.

Conclusion and Continued Collaboration

Moneyhub remains steadfast in our commitment to facilitating a smoother, consumer-friendly pensions dashboards ecosystem. We eagerly anticipate further collaboration with the FCA and other stakeholders within the Dashboard Operators Coalition (DOC) to ensure that UK consumers can benefit from a well-regulated, efficient, and user-centric range of different pensions dashboards services.

As part of our ongoing dialogue with regulators and industry partners, we look forward to contributing to an evolving regulatory landscape that best serves the interests of all parties, especially the consumers.

If you’d like to see a copy of our response in full, you can request one by sending us an email →

FCA authorisation and how Moneyhub can help

If you want to deliver Open-Banking-enabled services to your users, you’ll need to be authorised by the Financial Conduct Authority (FCA) as an  Account Information Services Provider (AISP) or become an agent of an existing AISP.

Applying for FCA authorisation is an extensive and time-consuming process that may not be necessary for your business. Becoming an AIS Agent may be an easier and quicker alternative, depending on your business’s regulatory requirements and how you plan to use Open Banking services. This approach allows you to provide Account Information Services (AIS) to your users through an AISP, such as Moneyhub while meeting legal and regulatory requirements.

So, what’s the difference between an AISP and an AIS Agent, and how do they work? Here are just a few things you need to know about them and the application processes.

What is an AISP?

AISPs are authorised by the FCA to offer Account Information Services (AIS) by gathering read-only financial information from multiple bank accounts.

For example, if a person holds accounts at three different banks. They can authorise the sharing of information from these accounts to an AISP. The provider can then access specific details from their account, such as balances and transactions.

This sharing of data can streamline financial processes, both for consumers and businesses. It can enable consumers to view all their accounts in one place and access simplified tools to manage their finances. At the same time, businesses gain a clear financial overview from multiple sources to create better, more personalised user experiences.

What’s the difference between becoming an AISP vs an AIS Agent?

To become an AISP, you’ll need to be authorised by the FCA. However, under PSD2, AISPs may provide their services through agents. Agents aren’t regulated by the FCA in their own right but can provide AIS to end users on behalf of the AISP. 

Acquiring FCA authorisation involves a lengthy application process, potentially taking 6-12 months, depending on how readily available you have the required documentation for the application process. It also requires demonstrating PSD2 compliance, including appropriate data privacy and IT security. Whether you need this authorisation is really down to your business’s regulatory requirements and how you plan to use Open Banking services - now and in the future. 

If you don’t require FCA authorisation, you can become an AIS Agent of Moneyhub instead. This option offers companies a quicker, more cost-effective route to market. After completing our simple application process and being accepted (which takes around two weeks on our side), we’ll apply to register you as an agent with the FCA on your behalf. 

If you’re unsure which route to take, the FCA has detailed guidance on whether authorisation or registration (via an AIS Agent)  is required depending on your business type.

How long will the AIS Agent application process take, and what information do you require? 

This typically takes about two weeks to process on our side. However, the overall timeframe depends on how quickly you supply the necessary information and how swiftly the FCA completes its approval - this normally takes up to 3 months, but it can be sooner. You’ll need to provide details via our Partner Compliance form, covering essential Know-Your-Customer (KYC) information about your business, your overall proposition, key activities, and specifics like data protection measures, compliance, and security arrangements. The collected information will verify that you've established proper processes to provide AIS that comply with FCA regulations.

Can you be an AIS Agent of more than one AISP? 

Yes, you can be an AIS Agent for more than one AISP at a time. You may require this if you’re switching AISPs to ensure your services remain in place during the changeover or if you’d like to bring in additional connections, data or enrichment to enhance your current AIS offering.  

Can you switch AISPs?

You can use the AIS switch feature to transition from your existing AIS service to Moneyhub. The norm for running two AISPs simultaneously during transition is about 90 days. During this period, customers are prompted to authorise Moneyhub in place of their previous AISP. To ensure uninterrupted services, we’ll send the data for customers still using the original AISP to Moneyhub via the 1st party data ingestion.

Looking to apply as an AIS Agent or switch providers?

If you’d like to learn more about becoming an AIS agent of Moneyhub or switch providers, contact our sales team.

It’s crunch time for building societies - how can Open Finance help?

In today’s rapidly evolving digital landscape, building societies are at a pivotal juncture. Renowned for their community-focused ethos and dedication to member-centricity, building societies have generally been slow to embrace digital and data-led propositions. 

In our latest whitepaper, bolstered by industry leader interviews and a survey of 2,000 UK adults, we examine the threats now facing building societies who are struggling to meet the digital needs of the customers of now, and will definitely fail to meet those of the future unless they take action.

The Digital Imperative

Our insights reveal that digital experience is among the top priorities for the majority of financial service consumers, and increasingly among the younger generation:

• 80% of consumers believe that a good online platform is important when choosing a new financial provider

• 66% of 18-34 year olds would like more convenient access to products and services without the need to visit physical bank branches

• 73% of 18-34 year olds said they look for an easy-to-use app when choosing financial products

• Almost half (47%) of building society customers reported difficulties engaging with their services, with digital experience a frequent pain point for many.

Today, speed, convenience, and flexibility aren’t just desired; they are the bare minimum expected. Consumers are now accustomed to the immediacy and ease of online services, and this shift represents a significant challenge for building societies whose strengths have traditionally been in areas outside of digital innovation.

“We’re at tipping point”

While the digital challenge is nothing new, the pace of change in the consumer context means that time is running out. An important challenge has become an urgent imperative, and building societies themselves recognise this..

“Future sustainability, relevance to members, that's the technological challenge that's there in the sector. I think we've fallen behind over the years. We haven't moved forward quickly enough. But I think now we're at a tipping point where we have to move.”

“We need to digitise or die. I would be that strong about it.”

Quotes from senior stakeholders

As building societies look to the future, two specific challenges are apparent. First, the introduction of Open Banking and Open Finance means that consumers have become better able to share their financial data and move their money quickly and seamlessly between providers. In turn, the relevance of the traditional, locally-focused, deposit-short-lend-long building society model is beginning to diminish.

Second, there is a risk that without modernisation building societies will struggle to appeal to the younger generations that represent the sector’s future. This demographic shows a marked preference for the digital offerings enabled by Open Banking and Open Finance and the stark contrast in preferences between younger consumers and the broader population underscores a pivotal trend: to secure a future, building societies must align their offerings with the digital expectations of emerging generations.

“You’ll see building societies over the next 20 years just go because they’re going to lose the people. Unfortunately, we only live so long and I don’t think they’ll get the funds on the other side.”

“We’re losing the relationship with the customer…we’re reviewing all of our processes and procedures to make them more digitised, to remove hurdles and friction in that journey - because that’s what customers want, right? Nobody really wants to go into the branch.” - Quotes from senior stakeholders

Building societies must undertake a bold digital transformation to remain relevant. This involves not only upgrading technological infrastructure but also adopting a culture that embraces digital innovation. Collaboration within the sector and partnerships with fintech companies can accelerate this transformation, providing access to advanced technologies and expertise without the prohibitive costs.

Conclusion: A Call to Action

The digital era is not just a challenge but an opportunity for building societies to enhance their member relationships and service offerings through strategic use of data and Open Finance. 

As they navigate this complex digital landscape, societies must be proactive in adopting Open Finance technologies that meet contemporary consumer demands, ensuring they remain competitive and relevant in the digital age.

Using Open Banking Payments to manage customer debt collections efficiently

Consumer debt has risen to unprecedented levels in the UK, presenting a serious challenge for companies that attempt to collect a growing mountain of unpaid bills. Recently, energy providers have resorted to injecting significant resources into financial support schemes in an attempt to lighten the load for those hardest hit. And many organisations in other sectors – from local councils to private landlords and housing associations – have taken steps to offer similar support.

The current consumer debt crisis hasn’t just illuminated how vulnerable consumer finances have become, but it’s also shone a spotlight on the inefficiencies of traditional debt collection methods. In this article, we’ll look at the scale of the challenge faced by many organisations and offer an Open Banking-powered solution.

The challenging issue of rising consumer debt

As of December 2023, UK households owed energy companies a record £3.2 billion in unpaid bills. (1) The increase is understood to be largely due to the rising cost of energy, compounded by the existing financial challenges already faced by millions of people across the country. While households are under significant financial strain, energy providers are being forced to invest millions into financial assistance.

EDF, the UK’s fourth largest energy provider (2), reported a worrying 52% increase in customers with unpaid bills between December 2022 and September 2023. (3) In response, the energy provider launched its ‘fresh start’ initiative, seeing it write off £1,250 in unpaid bills for thousands of its customers. And EDF isn’t alone in providing financial support to its customers. E.ON, the UK’s second largest energy provider, has invested £150 million of support as part of its ‘winter support scheme’. (4) And OVO, the UK’s third largest provider, has invested £40 million in its Customer Support Package to help its customers. (5)

Philippe Commaret, Managing Director of Customers at EDF, is concerned about the wider impact of customers falling behind on their payments: “More customers are falling deeper into debt with no real long-term solution in place to help them. Left unaddressed, the situation will drive up costs for all households, with other customers forced to pick up the bill.” (6) Meanwhile, EDF’s own research suggests nearly 65% of households are opposed to bill increases covering costs incurred by other customers.

In Scotland, over 270,000 people missed a council tax payment in 2023. (7) And because council tax is considered a ‘priority debt’, councils often use aggressive recovery methods such as bailiffs and courts to enforce the recovery of funds. In England, over three million people were taken to court for council tax debt between 2021 and 2023. (8)

In response, local councils are supporting people who struggle to pay their council tax in several ways. This includes offering Council Tax Support (a scheme to reduce council tax bills for people on a low income), providing exemptions and arranging new payment plans for those facing financial difficulties. The pressure on councils to recover funds is severe. With increasing costs, decreasing or frozen government funding and an increasing number of people falling behind on their council tax payments, local councils are facing a total funding shortfall of around £550 million. (9)

Rising consumer debt is forcing many companies and organisations to invest millions of pounds into support schemes, and this could result in bills going up to cover the investments. So what can be done?

Could Open Banking Payments provide a solution?

When utility providers attempt to reclaim debt, many rely on outdated Interactive Voice Response (IVR) systems to take payment over the phone. But while IVR technology was once cutting-edge, offering a way to automate customer service and payment processes without an employee picking up the phone, its limitations have become increasingly apparent as technology has progressed.

As well as being relatively complex for customers, requiring the input of payment details via touch-tone (often frustrating and prone to errors), IVR’s limited identity verification options leave the door open to fraud. Additionally, ensuring an IVR payment system complies with Payment Card Industry Data Security Standard (PCI DSS) requirements adds more complexity and significant ongoing cost for the utility provider.

At a time when customer experience and data security should be at the top of every company’s priority list, IVR systems are falling short in meeting those requirements. A new approach is needed that’s cost-effective, secure, compliant and offers a good customer experience.

Open Banking has been transforming the banking and financial services sectors in a variety of ways for several years. It’s enabled money management apps to aggregate several bank accounts into one central dashboard and is now introducing variable recurring payments (VRPs) which adjust based on a customer’s income or spending habits, all importantly with the customer’s consent.

With Open Banking, utility providers have the ability to reclaim outstanding bill payments in a much more customer-friendly, cost effective and secure way than existing IVR systems. Moneyhub now supports pay-by-link, giving customers the ability to make payments directly on their mobile devices without sharing payment details – providing peace of mind to the consumer and reducing the escalating cost overhead of data encryption for utility providers

Similarly for local councils, Open Banking could be used to take council tax payments on terms that are more viable for residents, resulting in increased council tax income and less money spent on support schemes and legal recovery costs.

How Moneyhub’s Smart Payments makes debt collection more efficient

Moneyhub’s Smart Payment technology makes use of Open Banking to enable companies and organisations to more efficiently and effectively support people who’ve fallen behind on their payments.

At the heart of Moneyhub’s Smart Payments lies the pay-by-link option: a simple yet effective and secure method of accepting payments. It enables utility providers and other organisations to send a payment request to a customer via email, WhatsApp message or even printed as a QR Code on a paper invoice. The link allows customers to initiate payments directly through their banking app, authenticated with secure bank-level biometric identification. As well as streamlining the payment process, it adds a level of security that IVR systems simply can’t match.

Another important feature, key to aiding the reduction of customer debt, is the forthcoming ability to automate variable payments. This allows a company to set rules that dictate the timing and amount of payment to request. For example, a rule could be set to request payment based on a customer’s financial situation, such as setting bill payment frequency to match their income frequency, allowing better budgeting. Today, Moneyhub is helping businesses prepare for Variable Recurring Payments, exploring commercial models that will redefine consumer propositions for years to come. 

Moneyhub’s Smart Payments technology offers a win-win situation for organisations and their customers. Customers benefit from an easier, more secure and more affordable method of making a payment. And  government organisations and businesses can benefit from a cost-effective, secure and compliant solution that improves cash flow since it increases the chance of a customer being able to make a payment, as well as minimising the lag between billing and collection. Importantly, Smart Payments helps improve the customer experience with a payment solution that’s both easy to use and secure, enhancing customer satisfaction and loyalty.

In essence, Moneyhub’s Smart Payments technology utilises the power of Open Banking to address the challenge of increasing consumer debt.

Find out more about Smart Payments.

References

(1) https://www.ofgem.gov.uk/publications/welcome-fall-price-cap-high-debt-levels-remain

(2) https://www.comparethemarket.com/energy/content/big-six-energy-suppliers/

(3) https://www.energylivenews.com/2023/12/15/edf-reports-52-rise-in-customers-with-unresolved-debt/

(4) https://www.eonenergy.com/newsroom/support-available-for-winter-energy-bills.html

(5) https://www.ovoenergy.com/customer-support-package

(6) https://www.energylivenews.com/2023/12/15/edf-reports-52-rise-in-customers-with-unresolved-debt/

(7) https://www.scottishhousingnews.com/articles/citizens-advice-scotland-over-270000-people-missed-a-council-tax-payment-in-2023

(8) https://inews.co.uk/news/council-tax-debt-3-million-uk-2387586

(9) https://www.lgcplus.com/finance/districts-forced-to-make-impossible-decisions-over-service-cuts-24-10-2023/