New research conducted by the Open Up 2020 Challenge reveals half (51%) of people are making a New Year’s resolution to save more, while more than four in ten (44%) want to spend less. With a quarter (26%) having overspent on Christmas in 2019, 42% say they now need to get their finances back on track.

This comes as three in ten (29%) admit they don’t have a ‘rainy day’ fund set aside for emergencies and a similar proportion (27%) feel uncomfortable about their current level of debt. Over half (57%) want to feel more in control of their finances – increasing to two-thirds (65%) of those aged under 55.

Open banking offers people the chance to get personalised, tailored support to help them manage their money by allowing regulated companies to securely analyse their bank data. There is a range of products and services available that use open banking to help people better budget, manage debt, and automate savings.

Six open banking apps to help people get their finances back on track in the new year are:

  1. Creditspring – an affordable credit subscription service offering short-term, interest-free loans to help those with limited savings or persistent debt cope with unexpected expenses.
  2. Moneybox – an innovative app which helps customers save and invest for their future by setting money aside in a range of savings products through round ups or regular deposits.
  3. Moneyhub – a financial management platform, pulling together multiple accounts, offering people actionable insights to improve their financial wellness.
  4. Plum – an artificial intelligence assistant that boosts someone’s bank balance through automated savings, easy bill switching and investments.
  5. Tully – a digital debt adviser for those struggling financially – providing online budgeting, debt advice, flexible repayments and money coaching to alleviate financial stress.
  6. Updraft – a solution which automates day-to-day decisions involved in managing money, designed to help millennial users clear their overdraft, pay off credit cards and save more.

All of these solutions are finalists in the Open Up 2020 Challenge, run by Nesta Challenges in partnership with the Open Banking Implementation Entity. There are 15 finalists in total which have already received £50,000 in funding in addition to non-financial support to help them further develop their product. Between three and four finalists will go on to be named winners in July 2020, receiving a further £150,000 -200,000 each so they can help even more people to manage their money.

Chris Gorst, Head of Better Markets, Nesta Challenges, said:

“A new year often motivates people to make a positive change in their life – whether that’s eating healthier, exercising more, or improving their finances. Luckily for the 26.7 million committing to save more in 2020, there are a range of open banking-enabled apps and tools available to help them take charge of their finances. By providing these apps with secure access to your bank data through open banking, you can get personalised guidance to help you make more of your money and help you reach your goals. Through Open Up 2020, Nesta Challenges is excited to be supporting innovators with impactful ideas that have the potential to truly revolutionise how people manage their money.”

The research also found that nearly half (47%) of people like the idea of using apps and tools to manage their money and 31% of 18-34 year olds plan to sign up to an open banking app this year.

Imran Gulamhuseinwala OBE, Trustee of the Open Banking Implementation Entity (OBIE), commented:

“Since open banking regulation came into effect, we’ve seen a host of innovative products launch to help people improve their finances – whether that’s through better budgeting, automating savings, comparing products, or finding ways to clear debt. We are working with Nesta Challenges on the Open Up 2020 Challenge to encourage even more of these ideas and to help millions more people across the UK improve their relationship with money. While some people are already using these products, in 2020 we want to see even more people take control of their data and, ultimately, their finances.”

For more information about Open Up 2020, and the full list of finalists, visit openup.challenges.org/

-ENDS-

Notes to editors:

For all media enquiries contact:

Robyn Margetts, robyn@seven-consultancy.com OR Emma Harvey, emma@seven-consultancy.com

Methodology: Opinium, on behalf of Nesta Challenges, interviewed 2,000 UK adults between 30 December 2019 and 2 January 2020. Data has been weighted to nationally representative standards.

26.7 million figure calculated based on 51% of ONS mid 2018 population estimate of 52,383,965 people aged 18 and over in the UK.

About Nesta Challenges

Nesta is an innovation foundation. For us, innovation means turning bold ideas into reality and changing lives for the better.

Within Nesta, Nesta Challenges uses challenge prizes to stimulate innovative solutions to some of the biggest challenges we face. Challenge prizes are a simple but powerful idea. A problem or opportunity is identified, the challenge is publicised and rewards are offered to those who can deliver the best solutions.

Nesta Challenges’ Better Markets team works with regulators, policymakers and innovative enterprises to make markets more competitive and open. We advise regulators and policymakers how regulatory reforms and targeted public investment programmes can work together to achieve greater impact.

About Open Banking Limited

  1. Open Banking Ltd (trading name) was set up by the Competition & Markets Authority (CMA) in September 2016 to fulfil one of the remedies mandated by the CMA following an investigation into UK retail banking.
  2. The CMA’s investigation into the retail banking market (whose findings were published in August 2016) concluded that older and larger banks do not compete hard enough for customers’ business and that Open Banking should deliver a new, secure option for customers to be able to compare the deal they are getting from their bank.
  3. Open Banking was created to enable innovation, transparency and competition to UK financial services. It is tasked with delivering the Application Programming Interfaces (APIs), data structures and security architectures that will make it easy and safe for customers to share their financial records by January 2018.
  4. The data provided by Open Banking will enable developers to harness technology that allows individuals and businesses to share their financial records held by their banks with third parties.
  5. Open Banking is a private body; its governance, composition and budget was determined by the CMA. It is funded by the UK’s nine largest current account providers and overseen by the CMA, the Financial Conduct Authority and Her Majesty’s Treasury.
  6. The 9 mandated institutions (referred to as the CMA9) are: Barclays plc, Lloyds Banking Group plc, Santander, Danske, HSBC, RBS, Bank of Ireland, Nationwide and AIBG.

About the Open Up 2020 Challenge

Open Up 2020 is run by Nesta Challenges and backed by the Open Banking Implementation Entity as part of the UK’s world-leading open banking agenda.

Open Up 2020 is designed and timed to boost consumer awareness and adoption of open banking-enabled products by providing 15 fintechs with up to £300k each, promoting their products in a national digital awareness campaign, and offering expert non-financial support so they can accelerate their solutions.