In today's fast-paced digital world, people are seeking comprehensive and personalised solutions to manage their finances effectively. Furthermore, pension scheme members often struggle to engage with their pensions leading to low contributions and limited financial planning for retirement.
Seeking to differentiate their offering in the market and address these challenges, Standard Life, a leading life assurance and pensions provider in the UK, turned to Moneyhub to understand how they can leverage the power of Open Finance.
The result was the development of Money Mindset – an innovative financial wellbeing app that empowers pension scheme members to take control of their finances and make informed decisions for a secure and sustainable financial future.
Understanding the Challenge
Pension scheme members are often automatically enrolled into their workplace arrangement by their employer. They tend not to have much of a relationship with or loyalty to the brand, and as such, workplace pension providers generally see quite low engagement from their members. In fact, in 2020 the FCA found 59% of adults contributing to a workplace DC pension have low, or very low pension engagement.
Standard Life understands that many people can feel overwhelmed when it comes to engaging with their finances, and that this can lead to a cycle of financial un-wellness. They also recognise that pensions are just one part of the puzzle, and that if people don’t know where to start or don’t have the confidence to take the initial steps in improving their financial health, they’re incredibly unlikely to engage with their pensions.
Building Money Mindset
To strengthen their relationship with members and become a more attractive choice for employers, Standard Life partnered with Moneyhub to develop Money Mindset, a comprehensive financial management platform designed to provide pension scheme members with a holistic view of their finances.
This financial wellness app was built with four key pillars in mind: solving day-to-day financial challenges, helping users save a rainy day fund, providing freedom to make financial choices, and assessing whether users are on track for the future.
Addressing Day-to-Day Financial Challenges
Money Mindset enables users to track their income and expenses, set budgets, and identify areas where savings can be made. By visualising their spending patterns, individuals can develop healthier financial habits and save more effectively.
Building a Rainy Day Fund
Recognising that many individuals lack sufficient savings for unexpected expenses, Money Mindset encourages users to set aside funds for emergencies. This helps them avoid falling into high-interest debt and increases their financial resilience.
Freedom to Make Choices
Once users have built a solid financial foundation, Money Mindset empowers them to explore different investment options, contribute more towards their pensions, or save for other goals. By presenting clear choices, Standard Life helps individuals make informed decisions that align with their financial objectives
Assessing Future Readiness
Money Mindset prompts users to consider their long-term financial goals, such as retirement planning, by providing insights into their current financial position. By having a complete picture of their finances and future projections, individuals can make adjustments and ensure they are on track for a secure financial future.
Early Success and Promising Results
Since its launch in June 2023, Money Mindset has shown promising signs of success. Notably, around 50% of users have connected additional financial accounts, indicating a higher level of engagement compared to competitors. App interaction levels are high, with 75% of users opening nudges, 69% actively using the transaction inbox feature, and significant usage of tools like the Pensions Finder and Content Hub.
Looking ahead
Standard Life's adoption of open finance technology and the development of Money Mindset highlight the growth opportunities available to businesses by supporting customers at every stage of their lifecycle.
By offering a comprehensive view of individuals' financial lives, supporting budgeting and savings, providing educational resources, and empowering users to make informed financial decisions, Money Mindset enhances financial wellness and strengthens the relationship between members and Standard Life.
Standard Life also plans to add further functionality and features to Money Mindset throughout the year with a focus on helping members navigate family finances, cost-of-living issues, and manage their finances through significant life events. We are planning to incorporate a range of support materials such as tutorials, videos and guides, designed to help employers integrate Money Mindset into their financial wellbeing and benefits initiatives.
In 2023, Standard Life also announced that they’ve chosen to partner with Moneyhub to deliver its commercial pensions dashboard within Money Mindset - enabling Standard Life’s 4 million customers to find and view their known and forgotten State, Workplace and Personal Pensions - locating some of the £27bn of lost pensions in the UK .
As the importance of financial wellness grows, Open Finance continues to be a key driver in empowering individuals to take control of their financial health