After a slow start, adoption of Open Banking is beginning to show some promise, but I don’t think the name is at fault for the sluggish start, as suggested by Mr blue hat. For clarity, the “Open” in Open banking is not describing the security, but rather the opportunities presented by putting the customers in charge of their own financial data.

Open Banking has enabled an ever-growing list of new services to emerge, such as taking control of your credit profile as provided by NestEgg, ethical spending through CoGo‘s app, and automated Financial Planning with Bippit.

There’s been no shortage media publications on Open Banking since it was first introduced last year. For a great overview of open banking, I found this post by 11FS very useful, but you can also browse the official open banking website which is surprisingly well made.

So let’s look in detail at one new service that’s coming through thanks to Open Banking, and see exactly how financial planning with Bippit compares to a traditional financial planner.

1. Accessing Your Financial Data

Traditional Financial Planning

This usually requires a lengthy sit down with a financial planner to go through your financial goals, current standing, and finally, to come up with a financial plan. You’ll often have to print out your bank statements, and confirm details about any loan agreements, and other financial services you use, so this can be a drawn-out process. But it’s important to note that you choose to give the financial planner access to this data.

Bippit’s Financial Guidance†

The same outcomes need to be reached – support with financial goals and setting up a plan to achieve them. The process is similar in that, again, the customer chooses to provide the account information to the Bippit app. But instead of printing out documents, access to each account is provided via Open Banking. After providing access, Bippit will have almost all the data it needs. And by being powered by A.I, it can help you setup the plan needed to achieve your financial goals, while saving you a lot of time. Ultimately, the customer owns the data. And as such, access to the accounts can be revoked by simply declaring “I REVOKE YOUR ACCESS”. Well, close. It’s even easier than that – you just need to tap a button.

2. Making sure your data is secure

Traditional Financial Planning

Although there’s a risk a Financial Planner could take your financial details and do something dodgy with it, it’s incredibly unlikely, because this will mean they get their license revoked, and they would face serious criminal proceedings. A certified financial planner is registered with the Financial Conduct Authority to ensure the right service is provided, and client data must be kept confidential.

Bippit’s Financial Guidance

Just as with the traditional financial planner, a company needs to be regulated by the FCA to provide Financial Services. This covers all the previously mentioned requirements to make sure the customer’s needs are met while keeping the data secure. Additionally, services like Bippit use the latest technology to secure and encrypt any and all data that they handle, which is a lot smarter than storing it the old-fashioned way on pieces of paper

3. Keeping track of your financial goals

Traditional Financial Planning

It’s recommended to review your own plans at least once a year, but most good Financial Planners will advise a review every quarter. This can be a lengthy and expensive process to check on the progress being made, what changes need to be done in the customer’s lifestyle, and if any adjustments need to be made to the plan.

Bippit’s Financial Guidance

Instead of meeting every quarter, Bippit is able to meet every second. Through Open Banking, progress can be monitored instantly and adjustments made automatically to ensure that your financial goals are still achievable, and you can message with your dedicated financial advisor for expert guidance whenever you like. There’s no need to setup a meeting, print out new statements, or go through an entire quarter’s worth of data. This will be done automatically in the background.

4. When life happens

Traditional Financial Planning

By “when life happens”, I mean the unavoidable and unexpected events – a broken down car that needs to be repaired, or a friend’s Wedding that’s actually going to be abroad now! These expenses can’t easily be planned for, and are difficult to incorporate into a financial plan.

Ensuring there’s an Emergency Fund is one way to deal with them. But what if your plan needs to fundamentally adapt because of a change of job or a new addition to the family on the way? It’s either you wait for the next review, or go straight to the financial planner again (for another £150 an hour!).

Bippit’s Financial Guidance

If you have an event coming up in 3 months, (like the wedding abroad!) you can plan for it in the app, and Bippit will help you make sure there’s enough there at the right time.

So, by digitising the Financial Planning process from end-to-end, Bippit is able to help you create financial plans with an expert to guide you along the way. Rather than visiting an office, paying £150 an hour to help plan your financial goals and fill out forms, you can achieve the same for free but requesting that your employer offer Bippit as a perk.