Open Up Challenge 2020 launches £1.5m prize fund
Nesta Challenges and Open Banking Limited have launched the £1.5 million Open Up Challenge 2020 for fintech innovators, reports Jane Connolly.
The prize fund aims to encourage fintechs to develop open banking-enabled solutions that help consumers to manage and make the best of their money, with a particular focus on lower income and vulnerable households.
Open banking enables regulated companies to offer personalised products and services by securely analysing consumers’ bank data.
Research by the organisers reveals that one in three people – equating to about 15.2 million – regularly run out of money each month and that more than half want to feel more in control of their finances.
The study showed that 86% of people who have already used a product enabled by open banking believe that it would help financially vulnerable consumers.
Lower income households were most interested in apps or services that would help them to save money on bills and lifestyle costs, and to save automatically.
“For many people, managing their finances can be confusing, time-consuming and stressful,” says Chris Gorst, head of better markets at Nesta Challenges. “Open banking is the biggest change in this sector since online banking and, with millions of people across the country struggling to keep on top of their finances, now is the time to ensure genuinely helpful products and services are able to come to market.”
Imran Gulamhuseinwala OBE, trustee of the Open Banking Implementation Entity (OBIE), adds: “With banks approaching their implementation deadline for open banking in September, Nesta Chellenges’ Open Up Challenge 2020 encourages and incentivises innovators to create even more products through open banking that will make a real impact on people’s financial wellbeing and wallets.”
The deadline for entries is 2 October 2019.