Hands up if you have ever tried to capture all your various expenses, savings, debts or investments in an excel spreadsheet – and keep it regularly updated. Or tried to share this kind of data in real time with a third party, safely and securely. How did you get on?
It’s often a complicated and time-consuming challenge, filled with significant hurdles and risk of human error. This was the exact conclusion Driftio founder Peter Montgomery came to, having searched online for a tool to help organise his finances, eventually drawing a blank.
At the same time, GDPR was on the horizon, becoming mandatory in EU law for people to have control of their financial data and how it’s shared. Since he couldn’t see a service on the market already, Peter thought this was a real opportunity to give people the chance to build a personal balance sheet that’s always up to date, have control over who can see the information, and get value from the data they choose to share. Creating Driftio had begun.
The app goes live
Fast forward a couple of years and the newly launched Driftio is live in Sweden – and on the verge of going global – with a GDPR data-sharing app and online service. It lets people use their validated financial information to get personalised, better value deals – and more. According to Driftio’s research, four out of five people want to share their data in exchange for lower prices or better terms.
By building Tink’s account aggregation technology into the service, Driftio users can seamlessly link to their various bank accounts in a click or two, and import their financial information in seconds. Without this step, users would have to manually find and input account numbers and financial information into Driftio, causing errors and drop off rates during the onboarding process.
Once the data has been fed into the app or online service, Driftio creates a personal balance sheet - showing the daily development of the user’s assets, liabilities and net worth. Because the information is being gathered directly from the financial institution, the data is accurate, and is automatically updated to ensure it’s always valid, making it more valuable.
Now Driftio can help people make better financial decisions and keep track of their financial wellbeing, which in turn reduces financial stress. With a 10 second daily check of their personal balance sheet, users can see how their property value, pension fund, or stock prices are changing, and how quickly debts are being paid off.
But importantly, people can also link their personal balance sheet with those of other financially linked family members, to get a full picture of the household’s economy. Data is shared safely and securely, ensuring only the chosen people or businesses can view it - not any other third party or Driftio employee.
Unlocking the value
To benefit from getting better value deals, users can do this actively, by choosing to challenge the terms or rate of their current financial products, or passively by getting in-app notifications of offers from banks or companies based on anonymous financial profiles.
During a big purchase, like a house or car, data can be shared in one click to prove to the broker or the seller that the buyer has the funds in place to immediately close the deal, or to prove their financial position to a mortgage lender. The seller gets a smooth and low risk sale while the buyer is in a stronger position to negotiate a better price or terms.
The service can also be valuable day-to-day, to keep track of any money owed to friends or family, and if someone buys lunch, users can add a reminder to take them out and repay the gesture. If a group of friends are collectively saving to go on holiday or buy a holiday home, users can all link to a savings pot so everyone can see how the fund is growing, while keeping control of their own money in their own account.
“When we started building Driftio, we were focused on the personal benefits of being able to see your financial balance sheet in one place, with a level of detail that isn’t offered elsewhere, and to keep it updated without any effort on the part of the user,” said Peter Montgomery. “But it quickly became more about how people can take control of their data and how it is shared, to get value back in a vast number of situations, helping people to prove their financial credentials in one click, and get a better deal.”
To get inspired and see how you can build the financial services of the future with the help of Tink’s technology, check out our use cases.