The data sharing feature that is the cornerstone of open banking has many benefits beyond managing finances in one convenient place. In previous articles we’ve talked about use cases ranging from making payments and accessing loans, to building a credit history and making charitable donations. Now let’s take a look at how open banking can be used to make product comparisons. With opening banking technology, getting the best deal on products and services is much easier than trawling through price comparison websites, something that has been a useful tool in the past. Here’s a run down of the apps which are helping consumers and businesses do just that.
ApTap is a financial management API connected to banks that enables customers to make bill payments quickly and easily, all in one dashboard. The marketplace then goes one step further, by helping customers to compare their current products and services with what else is available. They can cancel their current service provider or sign up to a new one within the app itself.
Koin Rewards gives customers the opportunity to buy products that are better for the environment and incentivises them for doing so. Rather than comparing products based on price, it helps consumers to make comparisons based on sustainable and ethical considerations. Koin Rewards also gives customers the option of making charitable donations.
Lumio compares savings accounts and investment products and gives personalised recommendations to customers that manage their money via its app. It’s designed to help consumers grow their money without spending lots of time researching and comparing different options. Lumio does earn referral fees from the companies listed in its community but doesn’t make recommendations based on this.
Youtility helps consumers to monitor their home finances such as utilities, telecommunications and insurance, compare providers and switch to new ones all within the same app. It uses behavioural science to deliver a seamless user experience and also offers customised, totally impartial recommendations.
One of the goals of the PSD2 directive was to encourage competition within the financial marketplace. Looking at the choice and quality of the apps now available, it would seem that this is already starting to come to fruition. With over two million open banking users in the UK, the technology is still in its early stages. But, as adoption becomes more widespread, expect more and more competitors to enter the market giving customers and businesses far better options for money management than ever before.
Pay iO’s articles do not constitute financial advice and are for information only.