“In the case of mortgages, this means advisers can help ensure that initial borrowing calculations are based on data that is up to date and easily shareable between banks, lenders and other institutions. This means lender decisions on mortgages are likely to be correct from the start and clients can avoid disappointment.
“Brokers will also be able to utilise software that enables them to have sight of the customer’s account activity, with the customer’s consent. This will allow them to streamline their administration processes as they won’t have to spend time sifting through paper bank statements.”
The risk of advisers being pushed out is also on her radar – a factor that is driving the network to see how it can assist advisers.
Ms Harle adds: “As a result of open banking, organisations who are able to operate as AISPs will have access to detailed financial customer data, which means they can push products to the customer based on what they are seeing in their spending and saving activity.
“This could include financial services products currently provided through advisers. However, this can also be seen as an opportunity, because it can lead to a conversation with an adviser about the product and there will still be a need for mortgage, tax and wealth advice.”
When Financial Adviser spoke to rival network firm Tenet, the company said it was too early for them to have something meaningful to say at this stage.
SJP says it was something they are looking at but declined to comment further.
Open banking may still be in its early days, but those who get a first bite of the cherry may find themselves in a good position.
Mr McKenna says: “The adviser should be encouraging customers to use personal financial management and open banking services, so that they are getting that information and service through the IFA and not the bank.
“A lot of the personal financial management tools out there will give the customer better information than they will get from the early open banking services, but that will change quickly. But now is the time for advisers to look at the organisations that can help them deliver this information to customers.
“Open banking will be predominantly delivered by apps to mobile phones, so advisers working with those software companies will be able to offer a similar experience to what people can get in open banking from their banks to their customers, but add to it all the long-term savings products that the adviser helps the client with.”
Ima Jackson-Obot is a features writer at Financial Adviser