Data from Plum suggests that an average person will save £ 1,000 more each year using the app than before. This is possible because open banking allows Plum to get personalized data for each user – after all, everyone’s financial situation is different, so no savings plan is right for everyone. “We wanted to create something smart, tailored to each individual’s income level and spending trajectory,” says Trokoudes.

This personalization and flexibility really made sense during the Covid-19 lockdown, as some people spent less and – assuming they keep their jobs or are on leave – maintained some income. Plum’s flexible algorithm understood the change. “We have seen the savings increase dramatically,” says Trokoudes. “This is exactly what should be happening.”

This was possible in a limited way before the bank opened, through tools that could extract user data from their accounts. However, this required a user to log into a platform and let the app collect the data. “It was very unstable,” says Trokoudes. “It was a bit complicated – the open bank made it really simple, with better quality data.”

This is true for other financial challenges, including credit and loans. For example, Creditspring offers short-term interest-free loans to meet unexpected expenses, while Canopy has created tools to help tenants improve their credit scores by proving they have paid on time and to enable tenants to access their deposit during the pandemic to help prevent those with reduced incomes turning to high cost credit.

The most important loan that most of us will face is a mortgage. Mojo Mortgages analyzes your spending to create a MortgageScore, which explains what you need to change to qualify for a mortgage, then helps you find the right deal when the time comes. “We try to put the client in a position where they can really see how a lender sees them,” says co-founder and CEO Richard Hayes. “Credit scores are actually a small part of it now and they’re really more about behavior and affordability. “

With this data, users can understand the impact of their spending habits on their chances of getting a mortgage, giving them more confidence and a better understanding of the lending process. This would not have been possible without open banking, he adds. “We use open banking to give the client and the advisor a better understanding and understanding,” says Hayes.

New banking methods are also being developed to serve the many new ways of working, with more self-employed people than ever before – 4.8 million Britons were self-employed in 2017, up from 2001, according to the Office of National Statistics.