InvestmentsFeb 3 2015

Tisa pushes for financial services ‘digital passport’

twitter-iconfacebook-iconlinkedin-iconmail-iconprint-icon
Search supported by
Tisa pushes for financial services ‘digital passport’

Support is growing for a ‘digital financial services passport’, according to Tisa’s Savings and Investment Policy project group, with almost four in 10 people wanting all of their personal financial details held on one site.

TSIP’s research found that 31 per cent of 2,161 respondents would save more if the process of opening savings/investment products and transferring money was made easier.

Almost half of those aged 18 to 24 would save more if the process was made easier. At a time when 19 per cent of people do not save and 11 per cent just set money aside at home, the TSIP project group is considering ways that technology can be harnessed to help rebuild consumer confidence and trust in long term savings.

One option being considered by TSIP is a ‘digital financial services passport’, which it claimed is gaining support from across the financial services industry and with savers.

A digital passport would authenticate individuals’ identity and enable savers to more easily open new products and safely transfer money between products and organisations.

TSIP claims this would improve consumer trust and security in digital services and also help reduce the costs associated with internal processes and systems.

Its research found that 36 per cent of people would find it easier to manage their personal finances if all of their details were held on one online site.

Nine out of 10 people indicated they feel comfortable using technology to access their finances, but as a warning to financial institutions to not exclude potential savers and investors, those aged 55 years and over were least willing to embrace technology to manage their finances.

These findings come ahead of the radical new pension reforms set to be implemented in April which will offer people unprecedented access to their retirement savings and a much wider range of income options.

Tony Stenning, chairman of TSIP’s project and head of UK retail at BlackRock, said: “Our research reveals that an additional 15m adults would save more if the process of opening savings/investment products and transferring money was made easier.

“At a time when we are in the midst of a savings crisis, it is essential that we grasp this now and consider all ways that we can create a culture where it is as easy to save for both young and old generations.

“We are living in an increasingly digital world and a financial services digital passport is one idea that warrants serious consideration.”

emma.hughes@ft.com