- 50% of people said that they wanted better access to financial products and services without physically visiting branches
- 47% said they wanted access to more personalised advice and a further 47% wanted greater flexibility when it came to managing their accounts
- 36% of customers think that Open Banking will have a positive impact on the quality and range of products available
With the government putting data at the heart of its plan for economic growth through introduction of the Digital Information and Smart Data Bill, new research – commissioned by the engagement, data and customer journey platform Moneyhub – has revealed how financial services firms are letting their customers down when it comes to providing digital services and missing opportunities to grow revenue, reduce cost and increase engagement.
Polling over 2,000 consumers, the research finds that half are looking for a better range of products and services from their financial services providers, without the need for visiting a physical branch. A further 48% said that using financial apps could enable them to save more by helping them manage their finances better.
The research makes clear what consumers want from their financial service providers. 47% of those polled said they wanted access to more personalised advice, and a further 47% wanted greater flexibility when it comes to managing their accounts. 44% wanted more simplified advice about certain areas of their finances and another 44% wanted more advice about their whole financial situation. Two fifths (41%) want their financial transactions to be faster, and 40% of customers say they want to have automated guidance on how to improve their situation.
Technology has fundamentally changed consumer expectations when it comes to how they manage their finances, interact with their financial services providers, and understand the value of their data. The FCA’s Consumer Duty mandates that firms meet these expectations – embrace wider data sharing, offer convenience and higher value exchange, and adopt a proactive approach to delivering better outcomes as well as more suitable products and services for consumers.
While a significant percentage of the customer base wants better products and services from their financial service providers, the research also shows that many customers believe they know where the solution lies. More than a third (36%) of customers think that Open Banking will have a positive impact on the quality and range of products available – rising to 54% among 18-34 year-olds. A third (33%) think that financial institutions need to embrace Open Banking.
The ability of Open Banking to create positive customer experience outcomes can be exemplified by products already in the market and available for use. For example, when polled on their experience with features of the whitelabel Moneyhub platform, which offers secure money management and budget planning, 84% of users agree that they have better control of their finances. A further 70% feel like they have got better at saving and/or investing, and 68% said the app has helped them to better understand what they currently have for their retirement and how much they need. Across all that have used the app over a month period, close to two thirds (63%) reported feeling positive about their financial situation.*
Dan Scholey, COO of Moneyhub comments: ”Companies embracing Open Banking and Open Finance can already meet and exceed what customers have come to expect from their financial services providers and provide low friction personalisation at an affordable price point. The kind of data insights necessary to recognise and meet customers’ needs – and to keep meeting customers’ needs over their lifetime – can only be derived from understanding a customer’s full financial position. Without Open Finance, it is virtually impossible to provide this to the mass market and therefore comply with Consumer Duty regulations
“The recent King’s Speech shows that the government means business when it comes to advancing the use of data to support economic growth, specifically by laying the foundation for the creation of Smart Data schemes. However, there’s only so much the government can do to bring modern data solutions to its citizens. Financial services, from banks to insurers, building societies to pensions providers or wealth and investment managers, on the other hand, already have the power to make a tremendous difference to their existing customer bases through the quick adoption of open finance and open banking solutions.”
