With the Pensions Dashboard launching this year, a massive step forward is taken in making financial information more accessible. At the same time it can’t help but feel like a missed opportunity to bring wealth in line with banking.

Since it became law in 2018 Open Banking has developed into a huge ecosystem of providers. It has changed customer expectations towards suppliers with innovative services such as finance management or budgeting tools creating real value for consumers and strengthening their customer relationships.

Open Banking could be replicated in the Wealth Management industry by implementing similar technology and regulatory frameworks that allow for the sharing of financial data among institutions.

This can include APIs (Application Programming Interfaces) that allow for secure sharing of financial data, as well as regulations that ensure customer consent and data protection. Additionally, wealth management firms can also use open banking technology to offer new services such as personalized financial advice and investment recommendations. However, it's worth noting that the wealth management industry is more complex and regulated than the banking sector, so the implementation might require some additional considerations.

What benefits would a Wealth Management version of Open Banking bring consumers? A Wealth Management version of Open Banking would bring several benefits to consumers, such as:

1. Greater Transparency: Consumers would have more visibility into their investments and financial accounts, allowing them to better understand and manage their wealth.
   
   
2. Personalised Advice: Open banking technology would allow wealth management firms to access a more comprehensive view of a customer's financial situation and offer personalised financial advice.
   
   
3. Improved Account Aggregation: Consumers would be able to more easily view and manage all of their investment accounts in one place, regardless of the institution where they are held.
   
   
4. Increased Competition: With more institutions able to offer financial advice and invest customer funds, competition among wealth management firms would likely increase, potentially leading to better products and services.
   
   
5. Reduced Cost: By sharing financial data among institutions, consumers may see a reduction in fees and costs associated with managing their wealth.
   
   
6. Better Customer Experience: By giving customers a better understanding of their wealth and more control over how it is managed, it could lead to a better overall experience for the customer.
   

AI Technology was used in the creation of of this content