Nine in 10 savers would use a digital pensions dashboard if it gave them a consolidated view of their pensions, savings and investments, according to research from The Investing and Saving Alliance and EY.
The report, based in part on interviews with more than 20 senior executives from across the financial services industry, found 90 per cent would use a dashboard if it consolidated that financial information, while 94 per cent of those currently using a dashboard would use an app if concerns about security were allayed, for example through a guarantee from a trusted financial institution.
Moreover, pensions were viewed as "the most likely ‘useful app’ – or the first product type that can deliver value," the report said.
The finding aligns with research by the Pensions Dashboard Project, which the report said had concluded "that younger users are interested in personalised dashboards providing ‘big-picture’ views of their finances, which are a baseline for informed decision-making".
The report found widespread support for such open finance apps, but listed a number of barriers to wider adoption, such as concerns about mis-selling and unauthorised access to data.
It did, however, find customers who had access to all the relevant information are almost ten times more likely to switch to better deals when offered.
Tisa digital chief executive Harry Weber Brown said: "Consumers will be able to easily and securely view their financial position by drawing data from multiple providers enabling them take more control of their finances.
"Financial service providers will be able to build better customer propositions utilising open data and shared services. This presents revenue generation opportunities and cost savings in data gathering processes for financial services."
He stressed the need to be "clear about the barriers to creating a world-class open finance ecology," however, such as the security of private data, and the need for investment in user-friendly and open application processing interfaces, which allow two or more computer programmes to work together.
"Core principles for any open finance solutions must consider affordability, particularly to ensure accessibility for smaller members, a fair allocation of costs and the capacity for ongoing development," he continued.
EY partner Jason Whyte added: "The UK was a world leader in open finance when the open banking regime launched in 2018, but the expected expansion has not yet materialised.
"With smart data included in this year’s Queen’s Speech, however, we expect the legislative and regulatory frameworks to enable – and compel – open finance to take shape more quickly, and it is a good time for industry players to engage with the agenda and start building it into their strategy."
Benjamin Mercer is a reporter on Pensions Expert
