Open Banking
What advisers need to know about open banking
Ian McKenna recently published an interesting article on the new PSD2 and Open Banking standards due to be introduced in January 2018. Ian comments that client portals can greatly enhance fact-finding, needs analysis and other services and provides the opportunity to model clients’ future income needs far more accurately, based on expenditure rather than estimates.
He suggests that these changes will have huge ramifications for many areas of the advice market. Combined with the information that will become available via the pension dashboards project, they will enable advisers to give customers a holistic view of their entire financial life.
We agree that both PSD2 and the Pensions Dashboard projects are certainly moving the industry in the right direction. PSD2 is likely to have only a positive impact for advisers as it will help reassure some nervous clients who may be reluctant to provide their banking credentials to a third-party in order to bring their banking data into moneyinfo.
The pension dashboard will help clients to identify old pension arrangements which they may have forgotten about or mislaid the information particularly from previous employers. Once you have a complete picture of a client’s existing pension arrangements then retirement planning can be much more accurate.
moneyinfo already provides aggregation for banking, credit cards, store cards, mortgages, property, investments, savings and pensions and brings together a client’s entire financial life with all the associated paperwork.
It provides a secure environment for sharing personal information which takes client’s personal and financial data away from the insecurities of email a key requirement of the forthcoming GDPR in May next year.
Ian concludes with the clear message that “Advice firms should be talking to their technology suppliers today. It is vital they are able to deliver personal finance dashboards to clients before the banks try to capture that role.”
We couldn’t agree more, read the complete article at: https://www.moneymarketing.co.uk/issues/8-june-2017/38-ian-mckenna-advisers-must-take-notice-open-banking-initiative/
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