Steve Tigar, CEO, Money Dashboard, a Calculus Capital portfolio company, discusses how the use of personal finance management apps is becoming more mainstream and how banks will have to react to customers’ wishes to pool their finances and financial data.
For the past few years banking has been facing what former Barclays chief executive, Antony Jenkins, predicted would be its “Uber moment” as technological advances loosen providers’ grip on customers and their financial records….
…In fact, this is already starting to happen and one of the early beneficiaries will be the startups behind personal finance management apps. Often dubbed “screen scrapers” in the banking world, they offer customers a single view of multiple accounts with different providers on one screen.
Steve Tigar, chief executive of Money Dashboard, says this is currently done against the wishes of customers’ banks, but when the high street names are on board with a secure open banking standard, it will revolutionise how people manage their finances.
“The banks have been warning against services like ours for several years because they don’t like us allowing their customers to pool together their finances in one service, through which we can offer advice that doesn’t come from the bank itself,” Tigar says.
“They’re now seeing that they can’t hold this back. They realise there is a service to be offered in providing a view of someone’s finances, showing where their money is going and how they could make better use of it. Moving forward, open banking will free up so much data that we’ll be able to suggest bank accounts where people would get a better deal. It would even allow us to suggest which energy or broadband tariffs they should sign up for and where they should shop for their groceries.”
See the full article on The Guardian here.