submits incorrect data , omits some details , or is simply not asked about a particular aspect of their finances , the algorithm could deliver a misdiagnosed recommendation .
Open Banking can transform this process , using open banking APIs to legally aggregate a customer ’ s data . This means that the algorithms used to generate investment recommendation could access a much wider data set that includes credit cards and bank accounts , and generating far more accurate and effective personalised advice and recommendations , while saving customers from spending hours on fact finding .
If granted rolling or recurring access , the robo-advisers can then continue to offer guidance , support and nudges to help customers maximise their unique circumstances in relation to their investment returns and their money more generally .
Whether it ’ s through embracing online banking , being able to track our spending or investments through apps , or the increasing prevalence of contactless cards , technology is transforming the way we interact with our finances . The true potential of Open Banking is still some distance away from its potential being fully realised , but it is already showing signs that it can play a pivotal role in closing the UK savings gap .
37
www . fintechmagazine . com