Innovate Finance has called on regulators to let fintech services do “more to help people” during the cost-of-living crisis, in a new report published with EY.
The fintech industry body said that regulators need to extend open banking rules to a “wider range of services”, prioritising savings accounts and credit and mortgages to support people in the current economic climate.
The report, which looked at how fintech tools can help with the cost-of-living crisis, also suggested introducing a cap on fees charged to access consumer financial data to broaden the adoption of lower-cost payment methods.
“There is more fintech companies can be doing to help people – especially with open banking, but this can only be made possible by regulatory change,” said Innovate Finance boss Janine Hirt.
“We are at a critical juncture, with consumers facing increasing pressures on their personal finances, and it’s essential there is a swift change in regulatory policy.”
The industry body also called for new regulatory rules to allow for more robo-advice – financial advice provided to consumers through computer algorithms – given to people “in need”.
Innovate Finance said regulators, particularly the Financial Conduct Authority (FCA), need to agree on clearer guidelines to allow rapid deployment of digital advice from fintechs.
“At a time when consumers everywhere are struggling with the increasing cost of living, fintechs are playing a critical role in helping all of us navigate through this challenging economic period,” Hirt added.
“Currently, eight out of every ten adults in the UK regularly use a FinTech tool, and we can increase fintechs usage, and value to the consumer, by bringing corporates on board as well.”