Consumer research by GlobalData shows that Moven, which has just entered the UK market, will find a receptive audience among a substantial minority of consumers looking for added-value account management services.
In February 2017, the self-styled neobank Moven, which already operates in the US, Canada, and New Zealand, launched a UK version of its personal financial management app. The app acts as an account aggregator that categorises spending, provides a running total of spending over the course of the month, and compares spending levels to previous months. The app, which makes extensive use of graphical visualisations, links to all of a user’s accounts, thus providing a holistic view of their finances.
GlobalData’s 2016 Retail Banking Insight Survey found that there is a large gap between UK consumers’ expectations in this area and what they actually receive from their existing providers. 32% of consumers, for example, state that graphical representations of their spending would be useful, but more than three quarters of these consumers are not offered this by their bank. Similar shortfalls are seen for personalised recommendations for managing finances more efficiently, and the provision of saving aids.
These persistent needs give Moven an opportunity to get its foot in the door, and planned moves towards open banking will improve its chances of acquiring customers. Starting in 2018, new regulations will mandate UK providers to offer API-driven access to customers’ transactional data. This will enable account aggregators to operate without requiring users to share their online banking login credentials.
This will help to create a favorable environment for third-party providers. By establishing its presence in the UK now, Moven will give itself a valuable head start as it builds its profile and knowledge of the UK market.