The FCA has backed the idea of open finance as a way of increasing access to advice. (Source: FCA says open finance could improve advice - FTAdviser.com)
For example:
- Open Banking
- The Pensions Dashboard
Pensions Dashboard
See https://www.pensionsdashboardsprogramme.org.uk/
Data Standards consultation closes in a few days.
Open Banking
According to McKinsey Consulting: If open finance continues to accelerate, it could reshape the global financial services ecosystem, change the very idea of banking, and increase pressure on incumbents.
Source: Financial services unchained: The ongoing rise of open banking | McKinsey, published 11 July 2021
The Pensions Dashboard
The 'pensions dashboard' could make it easier for customers to move and consolidate their pensions
On average, a UK adult can now expect to have 11 jobs in their lifetime. With the advent of AE, they will have a similar number of pensions. Currently, it is incumbent on the individual to monitor each of those pensions, as well as their state pension and DB pension entitlements, separately. A pensions dashboard would bring all that information together on one digital platform. Countries including the Netherlands, Australia and Sweden already have pension dashboards. Source: Pension freedoms - Work and Pensions Committee - House of Commons
The ABI reported in October 2017 that a prototype project had confirmed there were no major barriers to the creation of pension dashboards in the UK.99 The DWP is currently working on a “feasibility study to explore how best to approach pensions dashboards” and aim to report their findings in spring 2018.100 These will seek to resolve outstanding questions of how UK dashboards will function. The Government remains committed to ensuring that the industry introduces dashboards by 2019.
Source: Pension freedoms - Work and Pensions Committee - House of Commons
The pensions dashboard
The plan behind the pension dashboard, which was due to launch in 2019, is to create the technology to allow savers to see all of their retirement pots in one place at the same time, giving them a greater awareness of their assets and how to plan for their retirement. (Source: Bill for pension dashboard study hits £100K - FTAdviser.com)
The government initially signposted that every provider will move to providing access to their data in this manner.
More recently, government support wavered. The government then said industry should take the lead, and that it would not force providers to provide client data.
See PensionsDashboardProject.uk. It works off the back of the gov.uk verify service.