Tisa and Moneyhub to create API standards for open finance
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The Investing and Saving Alliance and financial data aggregator Moneyhub are planning to develop a set of API standards for open finance, with the goal of allowing individuals to more easily compare savings and investment products and switch between them.
Tisa’s Open Savings, Investments and Pensions initiative uses Moneyhub’s sandbox to experiment with data sharing. Participants in the trials include Fidelity International, Hargreaves Lansdown and Coutts & Co.
A first stage of testing with synthetic data will run from October 2021 until the first quarter of 2022, after which live customer data will be used in a beta phase lasting until mid-2022.
Once this phase has concluded, OSIP participants that sign up to the OSIP standards will be able to access information on their accounts via the OSIP API, Tisa said.
A first stage of testing with synthetic data will run from October 2021 until the first quarter of 2022, after which live customer data will be used in a beta phase lasting until mid-2022.
Once this phase has concluded, OSIP participants that sign up to the OSIP standards will be able to access information on their accounts via the OSIP API, Tisa said.
Like comparing car insurance
"The sandbox tests represent an important step in bringing Open Finance standards for the sharing of savings, investment and pensions data in line with Open Banking, especially when it comes to issues such as security, data minimisation and user experience," according to Tisa.
Tisa argues that its initiative enables individuals to compare products more easily, switch to better rates and make more informed trade-offs about whether to save, invest, spend or borrow, and that developing common APIs standards for open finance also creates the foundation for new propositions.
“Just as you can compare car insurance quite easily online today, we hope that one day soon you'll be able to quickly and in a transparent manner review your savings, investment and pensions, so you can quickly switch from one organisation to another if you’re not getting the best available deal," said Tisa chief executive David Dalton-Brown.
"For that to happen, the industry needs to collaborate on developing standards for open finance that are as robust and respected as those for open banking. Moneyhub, who participated in the development of the initial open banking standard and which has led the way for the industry in terms of thinking through the future of open finance, is the natural partner for us on this journey," he added.
"For that to happen, the industry needs to collaborate on developing standards for open finance that are as robust and respected as those for open banking. Moneyhub, who participated in the development of the initial open banking standard and which has led the way for the industry in terms of thinking through the future of open finance, is the natural partner for us on this journey," he added.
Sam Seaton, chief executive of Moneyhub, said open finance makes visible for the first time in one place all of a person's pensions, savings and investments, allowing them to make better-informed decisions.
"That’s why we believe it’s imperative the industry pull together to support the development of open finance standards and why Moneyhub is delighted to support the OSIP initiative. And let’s remember, open finance is not just changing the frontiers of financial services, it is also the backbone for a new automated economy that will touch all industries,” Seaton said.
Will a set of API standards for open finance change the sector?
