There is an opportunity for innovation in the financial services sector following research that found consumers were disappointed with the range of products on offer, according to Moneyhub.

The firm stated that its research showed how financial services were “letting their customers down” when it came to providing digital services, and missing opportunities to grow revenue, reduce costs, and increase engagement.

Half (50 per cent) of the survey respondents said that they wanted better access to financial products and services without physically visiting branches, while 48 per cent felt that using financial apps could enable them to save more by helping them manage their finances better.

Moneyhub said the research made clear what consumers want from their financial service providers, with 47 per cent calling for access to more personalised advice and 47 per cent wanting greater flexibility in managing their accounts.

Almost half (44 per cent) wanted more simplified advice about certain areas of their finances and the same proportion wanted more advice about their whole financial situation.

Furthermore, more than two-fifths (41 per cent) wanted their financial transactions to be faster and 40 per cent would like to have automated guidance on how to improve their situation.

“Companies embracing open banking and open finance can already meet and exceed what customers have come to expect from their financial services providers and provide low friction personalisation at an affordable price point,” commented Moneyhub COO, Dan Scholey.

“The kind of data insights necessary to recognise and meet customers’ needs – and to keep meeting customers’ needs over their lifetime – can only be derived from understanding a customer’s full financial position.

“Without open finance, it is virtually impossible to provide this to the mass market and therefore comply with Consumer Duty regulations.

"The recent King’s Speech shows that the government means business when it comes to advancing the use of data to support economic growth, specifically by laying the foundation for the creation of smart data schemes.

"However, there’s only so much the government can do to bring modern data solutions to its citizens. Financial services, from banks to insurers, building societies to pensions providers or wealth and investment managers, on the other hand, already have the power to make a tremendous difference to their existing customer bases through the quick adoption of open finance and open banking solutions.”

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