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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.

 

 

Nesta Launches Open Up challenge 2020 to encourage open banking innovation for consumers:

Nesta Challenges has launched Open Up Challenge 2020 – a £1.5 million prize fund, run in partnership with Open Banking Limited, to encourage fintech innovators to create open banking enabled solutions which help consumers across the UK make more of their money.

Research conducted to mark the launch of Open Up 2020 has found that millions of people across the country are currently struggling to stay on top of their finances. One in three (29%) say that they regularly run out of money each month – equating to around 15.2 million people.

The survey also found that half (52%) want to feel more in control of their finances and nearly four in ten (37%) know they could get a better deal for their financial products but don’t know where to start.

Open banking allows people to get personalised, tailored information to help them manage their money by giving consent for regulated companies to securely analyse their bank data. Products and services powered by open banking are beginning to show how people can revolutionise their finances through better budgeting, managing debt, automating savings, and making it easier to compare products. Half (48%) of people say they would like new tools and apps to help them manage their money and Open Up 2020 is designed to incentivise innovators to accelerate the development of these tools even further.

The study also suggests that these products and services could be particularly helpful for the most vulnerable in society or those who are not financially resilient. Nearly nine in ten (86%) people who have already used a product enabled by open banking think it would help people who are financially vulnerable to manage their money, and almost eight in ten (77%) believe that those struggling financially or on lower incomes need to be better supported to make more of their money.

There is clearly an appetite among lower income households for this type of support, with over a third (35%) of those earning £20,000 or less saying they would use an app that helped them manage their money. The areas that lower earners are most likely to want help with are: saving money on bills (25%), saving more money automatically (21%) and helping identify savings on lifestyle costs (17%).

Open Up 2020 will accelerate innovation in this space by offering financial prizes and expert support to the most impactful solutions which use open banking data to help people – particularly those struggling financially – to make more of their money. It follows the successful Open Up Challenge 2018 which focused on improving the financial products and services available for small and medium-sized businesses.

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

“For many people, managing their finances can be confusing, time consuming and stressful. But new digital tools are being developed to take the pain out of this process and it’s vital that as many people as possible can benefit from these solutions.
“Open banking is the biggest change in this sector since online banking and, with millions of people across the country struggling to keep on top of their finances, now is the time to ensure genuinely helpful products and services are able to come to market. Open Up Challenge 2020 will offer financial prizes and expert support to the most impactful solutions which help people – including the most vulnerable – take control of their money and make the most of it.”

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

“People can access their banking data and make payments easily and securely through Open Banking so that their hard-earned money works even harder for them. With banks approaching their implementation deadline for Open Banking in September, Nesta Challenge’s Open Up Challenge 2020 encourages and incentivises innovators to create even more products through Open Banking that will make a real impact on people’s financial wellbeing and wallets.”

Open Up Challenge 2020 opens for applications today and closes on 2 October 2019. To find out more visit: openup.challenges.org

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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 2,004 UK adults between 9 and 15 July 2019. Data has been weighted to nationally representative standards.

15.2 million figure calculated based on 29% of ONS mid 2018 population estimate of 52,383,965 people aged 18 and over in the UK.

About Nesta Challenges
Nesta is a global innovation foundation with a mission to spark and shape new ideas to improve how the world works for everyone.

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 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 banking has the potential to revolutionise financial services, transforming and opening up the UK banking industry by giving people control over their financial data in order to access innovative products tailored to them. Since it launched in 2018, open banking technology has opened the door for new fintech innovators to create cutting-edge tools for everything from budgeting, debt management, comparing/switching banks, automating savings, and more.

The UK is the acknowledged world leader in open banking, with many other countries – including Australia, Canada and the rest of the EU – now implementing similar initiatives.

This wave of innovation holds particular promise for people partially or entirely excluded from access to fair financial services, including:

• the 1.5m UK consumers who don’t have a bank account*
• the 1m+ consumers every year who need debt advice*
• the 50%+ of consumers who are not confident making financial decisions

More generally, it is estimated that UK consumers stand to gain £12bn from open banking-enabled tools.*

With applications opening in July 2019, Open Up 2020 is designed and timed to boost consumer awareness and adoption of open banking-enabled products by:

• providing 12 to 15 winning 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.

* Consumer Priorities For Open Banking, June 2019

Following the publication of the Consumer Priorities Report today, Imran Gulamhuseinwala OBE, Trustee of the Open Banking Implementation Entity (OBIE) responded:

“We welcome the Consumer Priorities for Open Banking report from the OBIE’s Independent Representatives, which gives a clear picture of just how much consumers and small businesses have to gain from using innovative new products and services powered by Open Banking. An estimated £18 billion a year is significant by anyone’s standards and could make a tangible difference to businesses and households. Taking into account recent recommendations as set out in BEIS’ Smart Data Review, it is clear that the blueprint Open Banking has created has the potential to extend into other sectors to really help people make their hard-earned money work harder for them.

“However, this is now the time to really build upon the encouraging activity we are seeing in the ecosystem. Open Banking is clearly showing promise and potential to make a truly seismic change in how people move, manage and make more of their money. Everyone in the Open Banking ecosystem now needs to play their part in seizing and scaling the opportunities that lie ahead.”

View the full Consumer Priorities report.

View report highlights

– – – ENDS – – –

For further information, please contact:

press@openbanking.org.uk – for Media enquiries

About Us:

Open Banking is a new, secure way for customers to take control of their financial data and share it with organisations other than their banks. Open Banking has the power to revolutionise the way we move, manage and make more of our money. For businesses, it is about making the management of cashflow and receiving payments cheaper and easier. Open Banking will make things simpler, faster and more convenient.

Open Banking follows the Competition & Markets Authority (CMA) investigation into the supply of personal current accounts (PCAs) and of banking services to small and medium-sized enterprises (SMEs).

Open Banking was created to enable innovation, transparency and competition in UK financial services. It is tasked with delivering the Application Programming Interfaces (APIs), data structures and security architectures that will enable developers to harness technology, making it easy and safe for individuals and SMEs to share the financial information held by their banks with third parties.

Open Banking will bring substantial benefits. It gives customers and SMEs greater market choice and greater control over their money and associated data, along with better and easier access to new financial services providers in a secure environment.

Notes to Editors:

  1. The Open Banking Implementation Entity (the “OBIE”, which trades as Open Banking Ltd.) 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. The OBIE 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.