Open banking for consumers
Cofounder and CMO, Snoop
Have open banking apps helped to develop consumers' understanding of their finances and shaped the way they spend and save. How have they done this?
“Open banking apps are helping consumers to develop a better understanding of their finances and make more informed financial decisions by providing easier access to information and promoting better financial habits through the intelligent use of data to personalise financial services.
Our experience at Snoop shows us that open banking app users are more likely to be satisfied with their financial situation and more likely to be financially resilient. Three quarters of our customers say that Snoop has made them feel better about their financial situation and 8/10 customers say it’s much easier to keep on top of their money and spending.
This is what open banking should be all about – making money work for people.
With the Government announcing its intention to kickstart a ‘Smart Data Big Bang’ across seven sectors, including energy, retail, home-buying, transport and telecoms, there is even more opportunity for the open banking ecosystem to help customers with their financial lives and make money work for them.”
CEO and founder, Salad Money
Will open banking-driven loan assessments improve financial inclusion and social justice?
“At Salad Money, approximately 10% of the people we lend to have no credit score, and these customers would likely have been instantly turned away from a typical credit-scored assessed lender. This could have forced them to join the estimated 3 million in 2022 who were borrowing from illegal moneylenders or loan sharks, had Salad Money not been able to help. It is important that everyone has access to fair affordable credit and that they are protected from financial abuse. By using an open banking decision model we were able to support these individuals with access to credit without ever using their credit file. We believe open banking data gives a more accurate representation of a person’s financial position, by securely sharing their data and enabling a credit assessment to occur. Whereas, by solely using credit-scored data, access may prove more difficult with things such as County Court Judgments (CCJs), impacting an applicant’s file for up to six years. Salad Money is using open banking in a way that improves financial inclusion and access to fair financial products, by offering those who may have been excluded by the mainstream a different route into fair, affordable credit.”
What are the next steps to ensure that the UK can develop a leading smart data-driven economy, and what opportunities can it deliver?
"The UK stands at the forefront of delivering a trusted smart data economy, one that not only protects but also empowers individuals, communities, businesses and society. In 2024, by harnessing our collective success, industry experience and policy leadership, we can deliver tangible economic, social and environmental impacts.
We must now move swiftly to collaborate and deliver market implementations across, and between, sectors.
This effort must include comprehensive outcome-based roadmaps supported with governance blueprints to ensure legal, technical, process and policy interoperability. Working together to navigate and shape the future of our data-enabled economy we can both unlock billions and lead societal innovation.”