More than half (52 per cent) of UK consumers are looking for new tools and apps, such as those enabled by Open Banking, to help them feel more in control of their finances.

This is according to consumer research published by Nesta Challenges to mark the launch of its Open Up Challenge 2020, which is offering part of a £1.5 million prize to encourage FinTech innovators to create solutions which help people make more of their money.

The fund aims to accelerate the development digital tools and apps to help consumers with better budgeting, managing debt, automating savings and price comparison for a range of products.

Of the 2,004 people surveyed, one in three (29 per cent) said that they regularly run out of money each month – equating to around 15.2 million people if applied to the UK population at large. In addition, 37 per cent said they know they could get a better deal for their financial products, but don’t know where to start.

The study also showed that the financial data sharing enabled by Open Banking could be particularly helpful for the most vulnerable in society or those who are not financially resilient.

Nearly nine in ten (86 per cent) of those who have already used a product enabled by Open Banking think it would help people who are financially vulnerable to manage their money, while 77 per cent believe that those struggling financially or on lower incomes need to be better supported to make more of their money.

Over a third (35 per cent) of those earning £20,000 or less said 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 per cent), saving more money automatically (21 per cent) and helping identify savings on lifestyle costs (17 per cent).

Chris Gorst, head of better markets at Nesta Challenges, said: “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.”

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