HSBC has responded to the recently imposed open banking regulations by launching Connected Money, an app that enables users to view all their bank accounts, regardless of supplier, on a single screen.
The app, now available on iOS 10 and above via the App Store, can display accounts from 21 different banks, including current accounts, savings, mortgages and loan accounts.
Since the arrival of the second iteration of the EU’s Payment Services Directive (PSD2) and the Competition and Markets Authority’s (CMA’s) rules for open banking in the UK, banks must be able to give third-party financial services suppliers access to customer data, if the customer agrees, through application programming interfaces (APIs).
This means developers at fintech (financial technology) firms and banks can create apps that can show all a consumer’s accounts in one place, and banks and suppliers can add other features on top.
Banks are keen to remain the go-to place for people’s everyday banking as competition from fintech companies hots up.
As well as providing a single view of all accounts, HSBC’s Connected Money app includes a feature suggesting where customers can make savings.
Becky Moffat, HSBC’s head of personal banking and advance, said: “HSBC UK is committed to building financial capability as a central part of the customer experience. Connected Money gives users the tools and information needed to manage their money with confidence.”
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With the EU’s Payment Service Directive (PSD2) taking effect in January 2018, banks have no time to waste in preparing for the changes it will bring.
Raman Bhatia, head of digital bank at HSBC, said the app launch follows HSBC Beta, which trialled the technology with staff and customers. “The app allows us to cater to a range of customer needs through joined-up banking and features such as round-ups, which help customers to build their savings without heavily impacting their everyday spending.”
David Bannister, analyst at Ovum, said open banking and PSD2 change the nature of banking. “At the moment, you have all of your financial services roughly with one bank,” he said. “You are not getting any advice from high-street banks.
“The new regulation allows a whole range of advisory applications, consumer advice, offers and things like that all in one place. That changes the consumer or even small business relationship with a bank.”