By Roger Baird on 6th February 2019
A new service has been set up for people in debt, giving them the power to let advisors see their bank accounts in order to offer quick and accurate advice.
The service is a tie-up between fintech bank transactions firm AccountScore and The Insolvency Panel launched this month.
London-based AccountScore has created an online consent platform as a result of banking reforms passed earlier this year, which allows people in debt to share income and spending information with who they choose.
It said the new service “will give face-to-face and telephone debt advisors the opportunity to get a full and accurate picture of a client’s situation instantly and enable them to concentrate on advice rather than data gathering”.
Those who need help with debt can share their banking information through the fintech firm’s consents.online platform, but still keep control over who has access to it via an app.
The Insolvency Panel, who advise people in debt said it will take up the service. The panel is a social enterprise business, which by law is mandated to either reinvest profits, or donate them to socially useful causes.
AccountScore chief executive Emma Steeley said: “Debt advice is something that we are incredibly passionate about and I believe that by partnering with The Insolvency Panel, together we will improve the experience of people struggling with debt and improve financial awareness and inclusion for customers, while providing a robust, easy to use platform for the industry.”
AccountScore’s consent platform operates under Open Banking, Payment Services Directive and application programming interface rules.
A change in European Union law at the start of the year has ushered in Open Banking, which means consumers can allow businesses, other than their bank, to access their financial data.
Advocates say this potentially allows customers to get better deals, such as cheaper overdrafts, and speed up switching between banks.
The Insolvency Panel director Andrew Smith said: “Our plan is to use Open Banking to support people in debt solutions from one end of the plan to another and to improve their financial capability. To that end we chose AccountScore’s consents.online platform because its emphasis on giving people transparent control of how their data is used is key to our need to make vulnerable consumers feel confident and empowered.”