The UK has always been ahead of the curve on open banking, starting its journey a couple of years before the rest of Europe. So understandably, it’s where we’ve seen some of the biggest open banking developments come from. We knew it would be an important market, which is why we threw everything we had at developing our open banking platform for the UK – and launched it in just four weeks.
So we were thrilled when NatWest became our first UK partner, with an ambition to overhaul its core mobile banking app. Now slated for the last quarter of the year, the service will use our Personal Finance Management (PFM) and Data Enrichment products to transform the service.
For NatWest’s customers, it means they will receive more personalised insights based on their financial behaviour and transaction history – giving them more control over their finances. NatWest, on the other hand, will gain a deeper understanding of its customers. And it positions the bank to meet the increasing demand for more personalised digital services.
So how can PFM and data enrichment really help banks improve their services? Let’s take data enrichment to start.
When customer transaction data can be gathered, cleaned up and meaningfully analysed, it unlocks real value – for the consumer and the bank. Using a machine-learning model that categorises these transactions, a user’s spending behaviour can be contextualised.
All of this gives banks a reliable and robust analysis of its customers’ transactions that can be turned into optimised risk management and data-driven sales.
Add to this the ability for banks to create broader financial profiles for each customer, using PFM to recognise and build a picture of people’s financial habits. This allows banks to generate personalised recommendations and offer services that help people manage their money better, by easily creating budgets and prompts – and giving people a better understanding of their overall financial picture.
With the final deadline for PSD2 legislation just weeks away, the opportunities for those who choose to leverage new technology is growing fast. In NatWest’s case, our partnership will help it deliver personalised recommendations to customers based on their spending habits – which will help engage people with their finances and allow them to make better financial choices.
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