Picture this: a world where your financial decisions are guided by a wealth of open data. Managing your personal finances is simple even in the face of rising living costs. Also, personalisation is commonplace and interactions with your bank are seamless. Open data is shaping the future of personal finance and is nothing short of a game-changer.
Moneythor’s Adam Gulden, along with panelists Dan Jovevski from WeMoney, Simone Jemmett from Look Who’s Charging, Experian, Jason Leong from PocketSmith, and moderater Sinead Lynch, unpacked the role of open data in revolutionising financial experiences. From budgeting to investments and exploring the exciting possibilities it presents in the broader Consumer Data Rights (CDR) ecosystem, the panel had some interesting insights and use cases to share at Intersekt 2023 in Melbourne.
Three key takeaways from the session:
1. There has been a rapid change in pace for personal finance in Australia, driven by Open Data.
Australia’s financial landscape is evolving rapidly, with open data driving growth and Australians actively engaging in managing their finances. The financial services sector is witnessing significant innovation, with a key focus on improving the customer experience. Budgets and resources within banks, dedicated to enhancing this experience have surged, indicating a clear shift in priorities. Consumers, however, remain wary about how their data is being used and stored, despite recognising its use. The advent of CDR is expected to instil greater confidence in data security and ensures that consumers are also better informed.
Additionally, there’s a glaring gap in providing financial support to the 18 to 35-year-old demographic and those who struggle with money management. Open finance is emerging as a powerful initiative to assist customers by providing a holistic view of their financial situation and helping them to manage their finances more effectively.
2. Personalisation is key for delivering engaging and timely insights to customers
As more financial data becomes available, the challenge for banks is to effectively analyse, categorise and enrich this data. This is important so that it can be used to deliver personalised insights and recommendations to help customers manage their finances.
While personalisation should undoubtedly be highly targeted, the quality of the data used for this purpose should also be of a high standard. Ensuring data accuracy is a significant challenge – maintaining consistency and real-time updates are vital. For clients with various customer touch points, using separate data sources for different purposes can lead to data inconsistencies and erode user trust. Therefore, the data-driven journey should be seamless, consistent and deliver real value to customers.
3. Building consumer trust is key for the effective and successful adoption of new data-driven products and services.
Building trust among users and consumers is pivotal for the successful adoption of new data-driven products and services. To foster trust, two critical areas need improvement:
- Technology: Enhancements are required to ensure that the fidelity and reliability of Open Data is consistent and securely used.
- Education: Banks should do more to assist customers when seeking guidance or information on how they are using their data.
The improvement in these areas is essential to gain greater trust from customers. Customers are willing to share their data when they perceive valuable use cases and a favourable return on sharing their information. Without this, they will remain suspicious about sharing their data.
In Australia, open data isn’t just a concept for the future—it’s already making waves and driving significant benefits in personal finance and beyond. It’s time to embrace open banking, as it continues to reshape the landscape, offering better banking experiences for all.
Want to explore the panel’s insights further? Watch the full session below!