UK-based data, intelligence and payments company Moneyhub has launched an ‘API Recipe’ that harnesses Open Banking APIs to help individuals plan for and meet their savings ambitions.
According to Moneyhub, 11.5 million individuals in the UK have less than £100 saved to fall back on.
However, individuals who “actively work towards well-defined financial goals” are around 10 times more likely to succeed and 83% of people who established financial targets felt better about their finances after one year.
Given these statistics, Moneyhub has developed the ‘Savings Goals API Recipe’ to enable users to set up goals and then track these against their spending and savings, as part of an automated savings “experience”.
Moneyhub customers using the ‘Savings Goals API Recipe’ will initially connect their current and savings accounts to the product, to allow the flow of data via Open Banking.
From there, they can set up a savings goal with a name, target amount, date and additional notes.
A visual and detailed representation of their progress is generated any time they check in.
Kim Jenkins, managing director of API, Moneyhub
“Living day-to-day and month-to-month, sometimes it’s easy to lose sight of long-term financial aspirations, whether that be saving for a holiday, a life event or a luxury item,” said Kim Jenkins, managing director of API at Moneyhub.
“Our Savings Goals API Recipe enables savings providers to support people on their road to financial wellness, helping them articulate and track their financial goals and giving them the tools to be financially resilient.”
Jenkins said the API Recipe can be easily implemented, either into existing applications or those that are “in build”.
“The potential benefits of financial diligence to both customers and financial service providers alike are numerous, and Open Banking capabilities are an underused resource for this purpose,” she added.
“In a world where the power of Open Banking is there to be used, institutions can move to adopt these technologies to give their customers the opportunities they want.”
Research published by Moneyhub in August last year found that, among 2,000 UK consumers, one-third (33%) believe financial institutions need to “embrace” Open Banking, while another 48% said that using financial apps could help them save more by encouraging better management of their finances.
