Our survey results confirmed that pensions
are viewed as the most likely ‘useful app’
– or the first product type that can deliver
The TISA-EY Open Finance Report 2022 is the vindication of many years perseverance by the Pension Dashboard supporters who are finally in a position to see light at the end of the tunnel.
The report should be presented to Guy Opperman – one of the aforementioned – who’s first term of office came to a close this morning, a day after this validation of his endeavour.
- Over 90% of consumers surveyed said they would use dashboards that consolidate the view of pensions, savings, and investments in one place
Harry Weber-Brown , CEO of Tisa Digital said of the report (in capital letters)
“THE ADOPTION OF OPEN FINANCE-TYPE APIs IS A HUGE OPPORTUNITY FOR CONSUMERS, PROVIDERS AND REGULATORS ALIKE. CONSUMERS WILL BE TO EASILY AND SECURELY VIEW THEIR FINANCIAL POSITION BY DRAWING DATA FROM MULTIPLE PROVIDERS ENABLING THEM TAKE MORE CONTROL OF THEIR FINANCES, IT IS THE NEXT, GREAT STEP FORWARD IN PERSONAL FINANCE.
Here are the quite staggering findings of the research carried out by TISA and EY
The report also highlights the threat from abuse of data by second rate and even fraudulent dashboard operators .
84% of those surveyed expressed distrust at how their data would be used. Trust in dashboards will need to be absolute. There can be no room for abuse, dashboards must be regulated and the rules governing the use of data – followed immaculately.
The 36 page report is packed with references to Fintech research. But it’s value is in some very simple messages. People want to find out what they are worth in terms of retirement saving and they want to know what that money will do for them- allowing them to stop or reduce work and get paid from savings rather than work.
People know intuitively how open finance works, they know that data can be requested through APIs and presented to them in interesting ways so they can look into the future with financial confidence.
This is the great “if only” which restores confidence. The capacity to press a button and find not just the pensions we know about , but the pensions we’ve forgotten about. The capacity to see all our savings on a screen, together with our entitlement to the state pension. A modeller that tells us when we can afford to stop work – these are devoutly to be wished for!
Please do no obstruct the free flow!
Great ideas can easily go wrong. The reverse of the risk that people have their data (and money) abused, is that they have their data and money refused.
The point of open finance is not just that you can see your money, but that you can spend it. The most dynamic and successful part of the Fintech ecosystem is its electronic payments.
This week we have seen Pension’s most successful Fintech, Pension Bee, complaining that the payment of pension money by money purchase CETV has slowed over the past 12 months. This is not just because of badly drafted regulations that cause red and amber flags to be thrown at hapless savers, it’s because of a malaise among many providers who consider the payment of benefits tantamount to a scam.
We mustn’t allow our aversion to the new to close finance to the tens of millions of savers who have no sense of engagement with their savings
The pensions dashboard presents them with an opportunity not just to see , but to bring money together to spend it as people like. This is the real pension freedom and it is the greatest opportunity in personal finance in my 40 years encouraging pension saving.