Future financial services
Providers that fail to develop a digital relationship with their customers risk losing their custom to a third party who can successfully aggregate customer data and present a more compelling money service.
These third parties would then be in a position to influence people and advise on where their long-term savings might be best held – all without giving existing providers a chance to make their own case.
Market awareness about the power of building a digital relationship with customers is still comparatively low.
Yes, there are a number that have made good progress. But there are still many who have yet to fully appreciate the change that is now imminent, and those which have acknowledged it but struggle to plot a way forward.
It is important organisations in the financial services sector do not see the pensions dashboard as an isolated project.
Modern consumers expect to be able to see a wide range of information about their finances in an easy-to-understand way.
When the dashboard is created it will start as a tool for the pensions industry, but in time it could also be expanded to include a range of financial services – from Isas to stocks and shares and more.
The organisations that thrive in this open data environment will be the ones that act now so they are ready for a digital, data powered future.
Richard Howells is director of insurance, wealth, life and pensions at Experian
