Technical functionality has long played a starring role in the development of modern financial services. However, in the rush to build the next big thing, many providers have inadvertently overlooked a critical element: the human being at the heart of it all. Business-to-business (B2B) platforms have been guilty of differentiating more so on technical specifications, or look and feel, than their ability to impact the real lives of consumers.
Beyond the code: addressing the human challenge
The focus on technical functionality is perhaps understandable from a buyer’s perspective. Seamless API integrations, real-time communication, and robust compliance are undoubtedly crucial for businesses, but the end game for financial service providers should be delivering added value to their customers.
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This is especially true in a volatile economy where many consumers grapple with high levels of financial anxiety, low confidence in managing money, and a lack of basic financial literacy. Recent research suggests 20.3 million people are living in financially vulnerable circumstances across the UK, up by 16% from 17.5 million in 2022 – a stark reminder of the human stories behind the technology.
People need help – and fast. Thankfully this help is on its way with developments such as Consumer Duty and the push towards Open Finance. These initiatives enable financial services providers to leverage the richer data-led insights from the expanding ecosystem to genuinely help consumers achieve better outcomes.
But raw data alone isn’t enough. The next frontier in providing better customer outcomes involves developing a nuanced understanding of individual financial circumstances and behaviours, spending patterns, risk tolerance, and receptiveness to new products. Understanding these insights is key to offering hyper-personalised services, enhancing customer satisfaction, and ultimately driving sustainable growth.
Done correctly, tailoring products and services that meet specific needs and preferences can be a key growth lever for the industry. The next wave of enterprise innovation will originate from platforms that prioritise technology that focuses on understanding these financial behaviours, not just the ability to access services.
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By GlobalDataOpening up to new possibilities
The UK is rightly considered a pioneer when it comes to Open Banking. In a sign of successful adoption, more than 15 million people and businesses – equivalent to nearly one in three adults – used services powered by Open Banking in July 2025.
Moneyhub’s extensive involvement since the early days has provided us with an unparalleled understanding of how transaction data can transform financial experiences. Yet, Open Banking represents just one piece of a much larger puzzle.
Individually, data points can be tiny and unremarkable – like pixels that mean nothing until they form a picture. It is only when these fragments are intelligently aggregated and enriched that a comprehensive picture emerges—revealing the nuance, patterns, and purpose within them.
By combining advanced categorisation and enrichment with emerging AI capabilities, banks can give customers detailed insights into their income and spending habits. Transaction categorisation and enrichment solutions, for example, can process a multitude of data sources, enabling our financial institutions to identify patterns, unlock suitable products and services, and empower consumers to make more informed decisions.
This granular understanding enables differentiation between a considered weekly grocery shop and a spontaneous meal deal purchase for instance. It transforms simple transaction records into an understanding that a customer is a new parent under financial pressure, juggling childcare with a stretched budget. This level of insight empowers consumers to manage their day-to-day finances effectively and enables financial providers to proactively offer solutions tailored to individual circumstances.
Building for every life stage
Importantly, the power of layering the latest technology over richer data sets extends beyond immediate insights. It offers support across multiple scenarios throughout a consumer’s entire life journey.
We’re already seeing the convergence of technology and data revolutionising lending and wealth management. As Open Banking evolves into Open Finance, real-time client data becomes readily accessible, enabling advisors to deliver more personalised and efficient services, and fostering a more proactive approach to client relationships.
Consider a newly qualified nurse requiring finance for a crucial first car. Automatic affordability checks, leveraging real-life income and spending data, facilitate quicker underwriting decisions while enabling providers to maintain disciplined risk selection. Furthermore, during life’s most challenging moments—divorce, redundancy, bereavement—the data gathering process for advisors is simplified and more accurate, significantly reducing client stress. This efficiency also frees up valuable time, allowing advisors to extend their services to a wider demographic in need of support.
Empowering savers: the Spring app revolution
Across the UK, it’s estimated a staggering 29 million adults are “current account coasters”, leaving their money sat idly in no or low-interest accounts. This widespread financial apathy costs consumers around £20bn annually in lost interest.
Paragon Bank is just one example of a bank which recognised this opportunity to help customers make more from their money. It launched Spring, a groundbreaking new savings app, earlier this year. Seamlessly pairing with users’ existing current accounts, Spring enables customers to view their current account balance directly in the app 24/7, and then easily move money between higher-interest savings accounts.
Applications like this show how data-driven insights can humanise financial services and deliver greater long-term value. When institutions look beyond the numbers to understand the full complexity of their customers’ lives, they can provide more meaningful support – strengthening relationships while building sustainable growth.
Dan Scholey is Chief Product Officer at Moneyhub
