Fintech industry body Innovate Finance has called on regulators to extend open banking to support the deployment of budgeting and affordability algorithms as a way to help Brits with the cost-of-living crisis.
In a report written with EY, Innovate Finance offers a plan for how industry, regulators and government can better work together to tackle cost-of-living pressures.
Fintechs, says the report, have already helped millions of customers manage finances better, shop around for better deals, manage sudden drops in income, spread the cost of essential purchases and get cheaper access to credit.
However, they could do more if regulators took action by extending open banking rules to a wider range of services, with priority areas including all savings accounts, credit and mortgages so consumers can get a complete picture of their finances.
The report also calls for a cap on fees charged to release consumers’ financial data for open banking e-commerce payments, enabling broader adoption of lower cost payment methods among merchants.
Innovate Finance also wants new rules on debt advice to enable more robo advice so that more people can receive easily accessible free financial advice.
Janine Hirt, CEO, Innovate Finance, says: “There is more fintech companies can be doing to help people - especially with open banking, but this can only be made possible by regulatory change.
"We are at a critical juncture, with consumers facing increasing pressures on their personal finances, and it’s essential there is a swift change in regulatory policy."
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