ValidPath Members to be amongst the first in UK to access benefits of ‘Open Banking’
Open Banking is a new regulatory framework under UK/EU PSD2 where from September 2019 all banks must provide dedicated APIs for third-party providers to access customer’s bank account data (with the customers consent). The intention of Open Banking is to provide customers with more control of their personal data and to unlock the barriers created by high street banks (that control user data) and to enable new services, called Account Information Services (AIS) to be created that will benefit the customer.
A core component of Open Banking is an 'Account Information Services' that provides customers with a consolidated online view of their payment and bank account information. Providing AIS is a regulated activity and therefore in-order to provide AIS you must be authorised by the FCA as a Registered Account Information Service Provider (AISP).
Looking to the future of financial advice, and with the industry experiencing unprecedented transformation via new technologies, new consumer expectations and new regulatory paradigms, we feel that having the capability for financial advisers to provide AIS to their clients will be increasingly important and a differentiating factor in the future.
Accordingly, after a five-month process, our group has recently been authorised by the FCA as a Registered Account Information Service Provider (AISP) enabling the provision of AIS to retail clients. The AISP authorisation makes ValidPath the only IFA Network with access to a primary AISP authorisation.
This is an exciting opportunity for ValidPath, our Members and ultimately clients! We feel the long-term opportunity with Open Banking and AIS will be to enhance the advice process by improving the robustness and accessibility of data while creating a better user experience for all stakeholders and supporting better outcomes for customers.
Initially, the first service will enable the automation of the fact-find process in relation to the profiling of client spending, which can often be a painful and laborious exercise for clients and advisers alike. We also see opportunities to flag certain traits that may indicate the client is ‘vulnerable’ and thereby reduce risk associated with advice.
We are excited to make this service available for Members in Q4 2020. To learn more, feel free to contact ValidPath.