By Daniel Lanyon on Monday 25 January 2021
Open Finance allows people to share their data with third parties who can help them understand their situations much more quickly and conveniently.
An acceleration of open banking technology and regulation to savings and investments is needed to expand access to better digital financial services, according to TISA.
Open Banking, which recently turned three years old, is increasingly heralded as just the start of a longer-term trend bringing the ability to port data across financial services. The reality is in the UK that the regulator the FCA is still yet to report back on its year-long consultation with firms.
Nonetheless, given a recent uptick in the use of open banking by consumers and providers of financial services, TISA thinks the opportunity is ripe for a push from savings and investments firms.
The financial services industry trade body is pushing forward with an initiative dubbed ‘OSIP’ (Open Savings, Investments & Pensions) which aims to create a set of API standards for savings, investment and pensions products.
According to TISA it builds on Open Banking's ability to enable consumers to share their current account data with third parties to access new products and services. Fintechs and other financial institutions will be given access to savings, investment and pensions data via APIs.
Harry Weber-Brown, Digital Innovation Director at TISA said: “Open Banking apps have already helped people set aside money to a savings account. Round-up savings or micro-saving small amounts is helping people on low incomes start saving for the first time and see that investing is possible. OSIP enables the industry to go beyond Open Banking by providing standard and accessible APIs to accounts not currently required by regulation. As a result, individuals can compare accounts more easily, automatically switch to a better rate, automate their savings or make more informed trade-offs about whether to save, invest, spend, borrow or consolidate."
“OSIP facilitates a wide range of advice services too. For instance, apps can nudge people towards getting financial advice earlier, perhaps for the first time. OSIP gives an adviser easier ways to fact-find and keep track of their clients’ situation. With more visibility of people’s all-round financial situation and future goals, advisers can set rules with their client to automate investments or drawdowns, ensuring their client’s money is always working as hard as it can for them. We are calling upon the industry to participate to build a truly holistic infrastructure for the UK.”