WE'VE heard the term "open banking" a great deal lately…

But I think it's important to examine what it means in more detail - and what it truly encompasses. 

Open banking refers to granting access to a person's banking data - including their payment history and prior transactions - to a third-party financial service provider, such as budgeting applications.

Many of us have found these services to be lifesavers since they have made budgeting much simpler and given users more insight into how much money they are bringing in and how it is being spent.

Providing people with the tools they need to manage their money more effectively has clear benefits as the cost-of-living rises.

A study by Yapily, however, revealed an unusual finding namely that 52% of the public had never heard of internet banking.

Given the current economic uncertainty, that is concerning.

According to the same poll conducted by the open banking platform, 95% of us are either somewhat or extremely concerned about the cost-of-living problem.

What’s more, 66% of consumers have used financial services and products including credit cards, buy-now, pay-later plans, and overdrafts in the last year to augment their income because of these anxieties.

Similar findings were found in a second poll by Plaid, an open banking network, which found that 62% of consumers are more anxious about money than they were a year ago, while 61% fewer individuals feel secure about their connections with money.

For many people in this situation, open banking services—from budgeting apps to financial dashboards—could be quite beneficial.

However, it is obvious that more work may need to be done to spread the word about the tools that are available and the benefits they might provide.

Giving individuals these tools put them in a better position to manage their finances, understand their spending and feel much more in charge of their money.

In turn, this provides individuals more daily peace of mind and puts them in a stronger position to benefit from a qualified, licenced specialist in this area.

Please don't hesitate to contact the team at Future Life Wealth Management HERE if you have any questions on how to manage your money more effectively or what resources will help you reach your financial goals.

We are always available to talk to you about any concerns you may have.