Half would use Open Banking apps for financial health

Nearly half (47 per cent) of UK consumers said they would use Open Banking apps to help them manage their finances, according to new research.

An Opinium survey of 2,000 adults for Nesta’s Open Up 2020 challenge found that 31 per cent of 18-34 year olds plan to sign up to an open banking app this year in order to use financial data to improve saving and manage spending.

A majority (51 per cent) of people have made a New Year’s resolution to save more this year, while four in ten (44 per cent) said they wanted to spend less on every day expenses.

The Christmas period has proved a set back with 42 per cent of respondents saying they now need to get their finances on tracks, with many looking to Open Banking style apps to help them keep on top of their finances.

Over half (57 per cent) want to feel more in control of their finances – increasing to two-thirds (65 per cent) of those aged under 55. Nearly a third (29 per cent) admitted that they did not have a ‘rainy day’ fund set aside to help them cover the cost of emergencies.

Nesta’s Open Up 2020 Challenge, launched in partnership with the Open Banking Implementation Entity (OBIE) has provided funding and support to Open Banking and money management startups including Creditspring, Moneybox, Moneyhub, Plum, Tully and Updraft.

These FinTechs are among 15 finalists in the Challenge, with between three and four finalists set to win the Challenge award in July 2020, with a further £150,000 -200,000 each to help scale their business.

Imran Gulamhuseinwala OBE, rrustee of the OBIE, said: “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,” he added.

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