Monzo and the pensions revolution

Monzo, the UK challenger bank, has been a key player in the fintech space and encouraged  wide adoption of Open Banking from Gen Z and Millennials. It recognised consumers’ desire for an intuitive, digital solution that enables them to manage all of their finances in one place - offering account aggregation, categorisation, and credit scoring through their Monzo Plus solution.

After its plans to move into the pensions market went public in 2023, Monzo has announced it will be launching a new pension consolidation solution that finds users’ pension pots and brings them into one fund, accessible through the Monzo app.

The announcement comes as Monzo’s research revealed that 51% of UK adults don’t know how much they have saved for retirement. It asked 2,000 people what would make engaging with their pension easier, and 38 per cent said a process that felt more accessible to manage alongside their everyday finances.

Pensions engagement in the UK

Earlier this year, we conducted our own research into consumer attitudes towards their pension and investment providers. We found that:

• 36% of 35-44 year olds said too little information from their providers was putting them off adding to their pension or investments

• 2 in 5 (42%) of all consumers say they don’t find it easy to interact with their providers

• 4 in 5 (79%) consumers “could save more money” if they had one app to view and manage all their banks accounts and financial products

And this lack of engagement is having a detrimental effect on financial health. Recent research has shown that around 88% of individuals with workplace pensions have at least one pension that remains unclaimed and there is an estimated £26.6bn of lost pension pots in total and nearly 1 million pensioners in the UK are living in poverty. 

The power of ‘all in one place’

A holistic approach can lead to better outcomes, and it begins with aggregation. Bringing pension pots together helps people understand their true financial position, and answer important questions like “will I have enough?” or “when can I retire?”. It also helps people make better informed decisions based on the performance of their pensions, both financially and ethically, and explore options such as consolidation. 

At Moneyhub we would go one step further and bring other investments such as savings, shares and even property into that view. Quite often people will take a lump sum earlier than or draw down faster than they need to when they have other options open to them. 

Monzo’s solution reflects what we are seeing from major players within the pensions industry; pensions are one piece of the puzzle, and need to be understood in the wider context of someone’s financial world. 

Providers such as Mercer, Standard Life and Scottish Widows are taking a proactive approach to helping members engage with their pensions and understand what they have, and what they might need for a comfortable retirement. By using Open Finance to position pensions alongside daily spending, savings, investments, properties and all other financial accounts, these firms are increasing engagement and enabling better financial futures for their members.

The future of pensions and Open Finance

Monzo’s announcement came hot on the heels of the King’s Speech (17 July 2024) in which it was announced that the Government will bring forward the Digital Information and Smart Data Bill, as well as a Pensions Scheme Bill.

Paving the way for Open Finance legislation, the Smart Data Bill seeks to set a clear framework for consent-driven data sharing, offering new opportunities for innovation to firms, and improved transparency, products and services to consumers - meaning there’s plenty of scope for further pensions transformation, through pensions dashboards and beyond.

If you’d like to find out more about what Open Finance can do for your business, and your customers, just get in touch →

How to connect your Pensions Dashboard to the Central Digital Architecture & Pension Providers

Connecting your pensions dashboard to the government’s central digital architecture (CDA) can be a daunting task, especially if your team is not well-versed in the technical aspects of the process. This post aims to provide an overview of the challenges and complexities involved in the connection process and how partnering with the right company can make this much easier.

Watch the webinar: How to build a pensions dashboard →

The Pensions Dashboard Ecosystem

Integrating your pensions dashboard with the CDA involves a lot of work. Unlike open banking, where customers authenticate with each bank or credit card provider individually, the pensions dashboard ecosystem allows customers to authenticate and verify their identity in one place via the Consent and Authorisation Service. This approach simplifies the process to some extent but doesn't remove all the complexities.

Connecting to the Central Architecture

You’ve gained all of your relevant permissions , and you’ve developed a User Interface that complies with all the relevant design standards . Now it’s time to connect to the PDP Central Digital Architecture (CDA) which is required for the ‘find’ process in Pensions Dashboards.

To do this, you'll need to use the User Managed Access (UMA) 2.0 standard.

This complicated protocol isn't widely used, so it’s unlikely that off-the-shelf libraries or vendor support will be readily available.

You'll likely require custom development and experienced engineering teams to tackle the intricate API flow and cryptographic signatures involved. Additionally, a lack of a robust sandbox or test environment makes debugging incredibly difficult.

Dealing with Individual Pension Providers

Connecting to the central service for authentication is only one part of the process. You'll also need to connect to individual pension providers to access the relevant pension data, required for the ‘view’ process in a pensions dashboard. 

The minutiae of this is similar to open banking and can be labour-intensive, as you'll need to obtain data from multiple providers.

Maintaining Compliance and Security:

When connecting to the central digital architecture, it's crucial to follow various standards, policies, and reporting requirements as part of the code of connection. Additionally, you'll need to have the right security policies in place, conduct penetration tests, and ensure that you're capable of handling sensitive personal and pension data securely.

The Benefits of Partnering with a Technical Services Provider

Working with a company like Moneyhub, which has extensive experience and expertise in this area, can save you time, effort, and money. Moneyhub can handle the complex UMA-based API and connections to pension providers while offering a simpler, single API for user authentication and pension data retrieval. 

You then have the option of designing your own front-end user interface, or we can handle that for you too.

How to comply with the PDP Data and Design Standards for Pensions Dashboards

Pensions dashboard development is being driven by the introduction of the Pensions Dashboards Programme (PDP) Data and Design Standards. These guidelines aim to create a unified and user-friendly ecosystem for individuals to access and manage their pension information. For businesses involved in designing a pensions dashboard, understanding the impact of these standards and ensuring compliance can be a complex task. In this post, we will explore the PDP Data and Design Standards, their implications for dashboard design, and why outsourcing to a technical services provider like Moneyhub can be a smart move.

Register for our upcoming webinar: How to build a pensions dashboard →

PDP Data and Design Standards: An Overview

The PDP Data and Design Standards are interrelated guidelines that focus on creating a consistent, secure, and user-friendly experience for individuals accessing their pension information through a dashboard. While the PDP Data Standards concentrate on the presentation and display of pension data, the PDP Design Standards address the technical, operational, and user experience aspects of pension dashboards.

PDP Data Standards

Aimed at ensuring a uniform presence of information within Pensions Dashboards, The Data standards provide exact details on all data that can be provided by pensions providers.

Including tables to help work out the myriad of scenarios that could be returned, The data standards are incredibly detailed and thorough.

The PDP Data Standards establish requirements for presenting and displaying pension information on dashboards, to ensure that users can easily understand and compare their pension data across different providers.

Key aspects include:

• Standardising data elements, such as pension type, pension value, and retirement age

• Data Exchange: Defining the structure, format, and protocols for exchanging pension data between providers, dashboard operators, and end-users

• Defining the format and structure of data to be displayed on the dashboard

• Ensuring consistency in the language and terminology used to describe pension information

PDP Design Standards

Concerned with comprehension, the design standards outline how Pensions Dashboards should display the information available.

From mandatory pieces of text, to guidelines on content that can add value, the standards are comprehensive.

The Design Standards provide a framework for developing pension dashboards that are secure, accessible, and user-friendly. They cover various aspects of dashboard design, including:

• Identity Verification: Ensuring consistent handover for central identification and authentication of users through secure methods

• User Experience: Establishing best practices for designing and delivering a consistent and user-friendly pension dashboard experience

• Security and Privacy: Implementing robust security measures and adhering to privacy regulations to protect users' personal and pension data

The Impact of PDP Data and Design Standards on Dashboards Design

Designing a pensions dashboard that complies with the Data and Design Standards can be a complex process, as it requires a deep understanding of the requirements and their implications for the design and development process. Some of the challenges businesses may face include:

• Ensuring consistency in the presentation and display of pension data across different providers

• Designing an accessible and user-friendly dashboard interface that caters to a wide range of users, including those with disabilities

• Integrating robust security measures and adhering to privacy regulations to protect users' personal and pension data

• Collaborating with pension providers and dashboard operators to establish seamless data exchange processes

How you can tackle compliance with the Data and Design Standards

Given the complexities and challenges associated with designing a pensions dashboard that complies with the PDP Data and Design Standards, outsourcing the design and development process to a Technical Services Provider like Moneyhub can be a smart move for businesses. Here are some key reasons why:

1. Tried and tested: We are already undertaking extensive usability research with real people, to assess and respond to how they interact with and understand the dashboard interface, ensuring a consistent and seamless experience for users.

2. Expert team: We are an Alpha Partner to the Pensions Dashboards Programme, and members of our team are members of the PDP Steering Group and have even contributed towards the development of the standards.

3. Efficiency: Outsourcing the design and development process to Moneyhub can result in a more streamlined, efficient, and cost-effective approach, as we already has the infrastructure, knowledge, and resources in place to ensure compliance with the PDP Data and Design Standards, and get you to market quicker.

4. Security and compliance: Our experience in the financial services industry enables us to implement robust security measures and adhere to privacy regulations, ensuring the protection of users' personal and pension data.

How to apply to the FCA to become a regulated Pensions Dashboards Service firm

By now we’ve seen that there will be many different providers of Pensions Dashboard Services (PDSs), and that, like you, many organisations will want to offer a dashboard to their customers or members. But what will organisations need to do in order to do that?

Register for our upcoming webinar: How to build a pensions dashboard →

Applying to the FCA to become a QPDS firm

Organisations that want to provide Pensions Dashboard Services will need to apply to the Financial Conduct Authority (FCA) to become a regulated Qualified Pensions Dashboard Services (QPDS) firm.

The application process will be a bit different depending on whether your organisation is already FCA regulated or not. Organisations which are already authorised by FCA must extend, or vary, the scope of their permitted activities. They must complete and submit a detailed PDS Variation of Permission (VoP) application.

On the other hand organisations which are not yet regulated by the FCA must submit a full application form, which provides the FCA with more information about the organisation, it’s internal structure, and the people who run and own it.

The information you need to submit

Those initial differences aside, all organisations will need to provide information that is vital for the FCA to assess whether they meet all the necessary requirements.

First, you’ll need to provide standard organisational information to the FCA, e.g. systems and controls, compliance arrangements, and policy and procedures.

Then, your organisation needs to provide information about your core PDS offering and explain how you will comply with the PDP and DWP standards and the statutory audit, Data export evidence and Consumer Duty considerations.

You also need to think about your PDS business model, the regulatory business plan, outsourcing arrangements, making your dashboard available to third parties and any Post View Services (PVS) you wish to offer.

How long will it take you to complete your application?

We estimate that the work that needs to go into the application will take approximately 6 months. But if PDS won’t be available to the public for another few years, why are we encouraging organisations to start their application process immediately?

Getting FCA approval is only the first step, because only QPDS firms are allowed to connect to the Government’s Central Digital Architecture (CDA) and conduct testing with live data.

This testing will no doubt identify a number of improvements necessary to bring your PDS to the public, so it’s imperative for organisations to connect to the CDA and start testing as soon as possible.

What do you need to ask yourself to begin your application?

The first important question you need to think about is whether you want to do a dashboard by yourself or partner with a Technical Services Provider (TSP), like Moneyhub. We have a separate blog post on that, which lays out the pros and cons of each.

You must also consider the Data Export journey, whether you will offer PVS and if so, how many you will be applying for.

PVS could be important for your customers and are a good way of keeping them engaged, but keep in mind that you will need to apply for each of them. To do that you will need to provide detailed information about every PVS and evidence that you have undergone user testing and how it may have affected the PVS in question.

The more PVS you apply for the longer it will take for you to test them and prepare your application. We recommend that you apply for a very limited number of PVS in your initial application and add more after receiving FCA approval, as live testing will uncover more of what your customers need.

Potential PVS you might consider offering

• Compare to a target - Am I on track for my retirement target?

• Compare to others - How do my pensions compare to those of people like me?

• Explore combining my pensions - Is it the right choice? Who should I combine with?

• Investigate missing pensions - Why is a pension not shown that I was expecting to see?

• Consider household pensions - Consider my spouse’s/partner’s pension alongside my own

Consumer Duty and Pensions Dashboards

Another important factor will be Consumer Duty.

Since this will be the first new FCA regulated activity in a post-Consumer Duty world, you will need to show how your organisation is acting to deliver good customer outcomes in the development of your dashboard.

We suggest that you gather extensive evidence on good customer outcomes, the key risks identified, how they were mitigated and how your corporate culture helps you treat customers fairly from the beginning of your PDS journey.  

Other considerations

You’ll also need to examine whether you want to make your dashboard available to third parties early on. If so, you’ll need to provide the details of arrangements with third parties and the oversight arrangements, which ensure that third parties do not compromise consumer protections and meet all regulatory standards.

And vitally, you’ll need to demonstrate that your dashboard complies with all the relevant PDP, DWP and FCA standards and undergoing a statutory audit, which will be the focus of our next blog posts.

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What do consumers want and expect from Pensions Dashboards? Part 2

This is part two of our write up of our webinar What do consumers want & expect from Pensions Dashboards?

If you haven’t yet, catch up on part one here.

It’s apparent that referring to the pension dashboard is misleading. How do you think the industry might help consumers understand more about dashboards and the problems they are solving?

Richard: There absolutely will be multiple dashboards. It's crucial to help consumers understand their purpose and the problems they solve. Different consumers have varying needs, and dashboards must cater to these diverse requirements. Some users may want to check their pension through their banking app, while others might prefer to consolidate their pensions with a specific provider or use the government's MoneyHelper dashboard. Although all dashboards will show the same information, providers will offer them within different existing customer journeys, making them relevant to specific consumer needs at various stages of their financial lives.

It's important to note that consumer behavior cannot be legislated, and people tend to gravitate towards companies that align with their needs and preferences. For example, Lloyds Bank offers a pension view alongside their banking app, which has increased engagement and understanding. However, consumers may also seek providers that focus solely on pensions, as their priorities align more closely. The industry must become more aware of these consumer preferences and behaviors, ensuring that dashboards cater to different needs and expectations, ultimately providing a better user experience.

Is the government agnostic about which dashboards people use? And what does consumer success look like from Government’s perspective?

Chris: While I cannot speak on behalf of the government, I can provide insight from the Pensions Dashboard Programme (PDP) perspective. The government recognizes that there isn't a single use case for pension dashboards, and it's crucial to ensure that various use cases are accommodated in the future. The MoneyHelper dashboard will be the first confirmed dashboard available to the public, providing a government-backed, independent option that serves as a gateway to other offerings and free guidance from the Money and Pensions Service.

The government aims to build an infrastructure that allows for growth in the dashboard market, making them widely available from different providers and accessible through various platforms, such as banking apps or employee portals. This approach offers consumers choice and convenience in meeting their pension needs. As the market develops and users determine their preferences, the government wants the market to be responsive and provide a wide range of choices and benefits.

For pension dashboards to be successful from the government's perspective, they must be easily accessible, trustworthy, and provide satisfactory service with adequate protection - users need to trust the information and the provider, and know that if something goes wrong, there's an easy way to address it. By enabling an active and flourishing dashboard market, the government aims to help consumers meet their diverse pension needs, acknowledging that there isn't just one use case, but many.

What are your thoughts on which dashboard people will want to use? Or, more precisely: Which dashboards will different types of consumers want to use?

Alastair: Predicting which dashboard people will want to use, or more precisely, which dashboards different types of consumers will want to use, is quite challenging. It's difficult to determine consumer preferences until the dashboards are launched and used in real-life situations. People don't typically have a "dashboard day," but rather, they encounter these services while going about their daily lives, such as at work or while using other online services.

It's essential to work with consumers' preferences and go where they already are. Financial service providers, such as banks and pension providers, may have an advantage in this regard. However, the willingness of people to consent to different providers will play a significant role, as sharing sensitive financial information is a concern for many. Some individuals may prefer using a government-backed service like MoneyHelper due to its perceived trustworthiness.

The key to overcoming these hurdles is to present a strong use case and effectively communicate the benefits of using a particular dashboard. Although it remains to be seen which dashboard will be most popular, having multiple providers can increase reach, engagement, innovation, and ultimately lead to better outcomes for consumers.

What is early research telling us about which dashboards people might use, and why?

Richard: Early research reveals interesting insights into consumer preferences. While there is often a gap between what people say they will do and what they actually do, the reasons behind their choices can be quite revealing. In one study conducted by Moneyhub, 60% of respondents said they would prefer to use a commercial dashboard, while 40% opted for a government dashboard.

For those who chose the government's dashboard, impartiality was a key factor. These individuals appreciated that it seemed central and provider-agnostic. On the other hand, 10% of respondents preferred using another app, like a wealth app, because they believed that pensions are not the government's business and a dashboard should not be linked to a provider. Trust was also crucial for those who would use their bank's dashboard, as they relied on the security and reliability of their banking app for financial information.

Lastly, a third of respondents said they would use their pension provider's dashboard, as they associate pensions with their provider and expect them to have a dashboard. The variety of responses and reasons highlights the diverse preferences among consumers, indicating that multiple dashboards may be necessary to cater to different needs and expectations.

What sort of innovation do you think we can expect from the multi-dashboard landscape?

Alastair: We can expect innovation in various aspects of financial management and support. The benefits of this landscape will likely include advanced tools for analysing personal finances, identifying life moments, and providing tailored support. There is an ongoing debate about the advice and guidance boundary, with industry proposals for personalised financial guidance.

Consumer groups are cautious about this, but there is potential for regulators to provide clearer guidance on how firms can support customers. This may include highlighting tax implications or pointing out differences in types of annuities. Clarity in this area could lead to more effective support for consumers without necessarily shifting the contentious advice and guidance boundary.

As the dashboard program progresses, it is crucial to have a clear, credible, and updated plan, including a launch date for consumers. This should involve extensive testing before and after the launch to ensure a smooth and effective rollout. Learning from other sectors and international experiences will also be invaluable in refining the dashboards and adapting them to evolving consumer needs and preferences. The multi-dashboard landscape promises to be an ongoing process of innovation, testing, and improvement to serve consumers better.

Chris: Innovation can be expected in several areas, such as improvements to individual dashboards, enhancements across all dashboards, and the placement of dashboards. As standards are updated over time, we will gain insights into what works best and how individuals use dashboards effectively. The type of information displayed on dashboards will also likely evolve, with elements like costs, charges, types of investments, and pensions in payment being integrated in the future.

The timeline for implementing these innovations is currently under review, with an announcement from the Minister for Pensions expected before the summer recess. The primary goal is to establish a feasible and achievable timeline that meets the objectives of the industry, dashboard providers, and consumers. Ensuring that the right product is launched for consumers is crucial, and the public launch date will be determined once a clear vision of what can be delivered is established. While details are limited at this stage, the multi-dashboard landscape is guided by a strong set of principles aimed at improving the consumer experience.

Richard: We can expect innovations that address consumers' core questions: What have I got? Is it enough? And what can I do? Different organisations will cater to various consumer needs, providing more content and narrative explanations to help users understand their financial situation better. For instance, integrating open finance can enable seamless extra contributions to pension funds, making the process painless and frictionless.

In terms of timeline, the focus should be on consumer needs rather than data provision. Moneyhub is hosting a series of webinars to refocus the debate on consumers, exploring topics such as whether organisations will build their own dashboards or partner with specialists. Additionally, a LinkedIn group has been created for those interested in developing dashboards, fostering collaboration and idea-sharing. Some organisations have already chosen to white-label Moneyhb's dashboard, leveraging existing expertise instead of building their own. Overall, the multi-dashboard landscape will see innovations that prioritise consumer understanding and engagement in their financial journey.

What do consumers want and expect from Pensions Dashboards? Part 1

In May, we hosted a webinar What do consumers want & expect from Pensions Dashboards?

Driving the conversation on from back-end data connectivity to what dashboards will look like, how and where people will use them and how providers will deploy them in their existing customer journeys.

We were joined by Chris Curry (Principal, Pensions Dashboard Programme at MaPS), Alastair Reed (Principal Policy Adviser, Money at Which?) and Richard Smith (Independent Pensions Dashboards Consultant at Pensions and Lifetime Savings Association & Moneyhub) and the session was chaired by our CEO Sam Seaton.

You can watch the replay of the webinar here, or read on for part one of a write up of the questions covered.

Why do consumers need Pensions Dashboards?

Alastair: Consumers need Pensions Dashboards because pensions and retirement planning are complex aspects of personal finance, often involving large sums of money and difficult decisions. Many people struggle to understand their pension holdings, where they are held, and what their prospects are for retirement. Pensions Dashboards aim to address these challenges by providing a comprehensive view of an individual's pension assets, helping them make better decisions and potentially identifying lost or forgotten pensions.

While consumers may not need to check their pension dashboard daily, it is essential to review it at crucial life moments and when approaching retirement. Pensions Dashboards can encourage better decision-making, such as when to access pension funds and whether to seek advice or guidance. By providing a clearer picture of their pension assets, consumers can make more informed choices and better prepare for their retirement years. Ultimately, Pensions Dashboards aim to increase engagement and simplify the process of managing and understanding pension funds.

What’s PDP’s perspective on the key consumer needs that the overall dashboards initiative is seeking to address ?

Chris: One of the side effects of automatic enrollment is that people may not know they have pensions or where they are located. This can be due to different company names or market consolidations. It’s so important to now help people find lost pensions, which will lead to better planning and retirement understanding, which in turn will lead to improved outcomes for consumers. Pension dashboards are part of the solution to this, though should not be the sole basis for decision making). For dashboards to be effective, information must be presented clearly, in plain English, and be comparable across different pension types. Additionally, there should be clear signposting to impartial guidance and advice. Ultimately, the goal is to empower individuals to make better decisions, leading to better outcomes in their pensions.

What else can you tell us about what the research has shown us consumers want from dashboards?

Richard: Research has consistently shown that consumers want specific features from pensions dashboards. Firstly, consumers have expressed excitement and a positive reaction to the idea of a dashboard, as it can help alleviate anxiety about their financial future and improve their overall well-being. Secondly, they want comprehensive coverage, meaning they can see all their pensions in one place. This has led to new laws requiring all pension schemes and providers to make their data digitally available. Thirdly, consumers desire key information such as total monthly income (TMI) in retirement across different pensions.

Furthermore, consumers want security, simplicity, and support without being sold to. They need to trust the security of the dashboard, have information displayed in a simple, understandable way, and receive guidance without feeling pressured to buy any products. According to Nest Insight's research, consumers respond best to pension communications that are positive, plausible, plain-speaking, and personal. Dashboards provide this personalised communication, and with multiple organisations working together, consumers can expect secure, simple, and supportive dashboards with comprehensive data coverage in the near future

A lot of focus is on the underlying data provision and PDP’s central digital architecture, what does a consumer facing dashboard actually consist of? 

Richard: The pensions dashboard ecosystem is composed of numerous stakeholders operating in different layers. Layer 1 represents the consumers who can choose which dashboard they want to use. Layer 2 includes the Government's dashboard, the MoneyHelper dashboard, and various commercial dashboards such as Lloyds Bank and Moneyhub. Regardless of the chosen dashboard, they all connect to Layer 4, the Central Digital Architecture (CDA) provided by PDP. Layer 5 includes data connections into the CDA, while Layer 6 represents all pension schemes and providers. Layer 7 showcases the complexity of mandatory data provision.

When a user logs into their chosen dashboard, the CDA verifies their digital identity and passes their personal details to all connected data providers. These providers must then carry out a comparison and return the prescribed pensions information to the user's dashboard. Upon logging out, the pension information is not retained but can be exported for further analysis.

Layer 3 is crucial as it involves regulations and standards set by various entities, such as the DWP, HMT, FCA, and PDP, with the primary aim of protecting consumers. These regulations include DWP guidelines, Treasury's Regulated Activity Order, FCA's Pension Dashboard Conduct of Business rules, PDP design standards, and annual statutory compliance audits. Additionally, dashboard providers must comply with data, technical, code of connection, and reporting standards. As the dashboard ecosystem evolves, these standards will be updated to continuously improve pension services for consumers.

Can you explain to any firm considering offering a dashboard to their customers about the different FCA and PDP requirements, how they interact, and how to go about approaching them?

Chris: Firms considering offering a dashboard to their customers should be aware of the different FCA and PDP requirements, as well as how they interact and how to approach them. Pensions dashboards are a force for good, but they can also make people more susceptible to scams and fraud. Therefore, it is crucial for firms to ensure that the dashboard is secure and reliable. There are three main requirements to consider: existing legislation, FCA rules, and PDP standards.

The FCA rules specify what firms must do when acting as a qualifying pensions dashboard service, while PDP standards provide guidance on how to do it. Many firms running dashboards will be familiar with the multi-level, multi-agency approach, as they may already be complying with FCA rules and the FCA Rule Book. PDP standards set out how to connect and interoperate with the Central Digital Architecture, as well as design standards for displaying pensions information and signposting.

It is essential for dashboards to provide information in a way that users can understand and make informed decisions. To ensure there are no gaps between FCA rules and PDP standards, both organisations have been working closely with the DWP. They have recently conducted a consultation and are currently reviewing the responses to update their requirements.

Firms should listen to the consultation responses and be prepared to adapt their dashboards as regulations and standards evolve. By doing so, they can ensure that their dashboard provides a secure, reliable, and user-friendly experience for consumers while complying with all necessary regulations and standards.

Which? has been instrumental in shaping the consumer standards - can you tell us about the key things you were worried about in your response to the FCA and PDP consultations, and also where you see opportunities for firms to best serve their customers?

Alastair: At Which?, there were concerns regarding the response to the FCA and PDP consultations, as well as opportunities for firms to best serve their customers. The key concern was whether financial conduct should regulate dashboard providers and if there should be multiple dashboards from the private sector. The benefits of multiple dashboards could outweigh the risks, but only if strong consumer protections are built into the system.

Which was pleased when the government committed to a bespoke regulatory system, as existing protections like GDPR might not be sufficient. The FCA's proposed regulations, such as a ban on advertising on dashboards and restrictions on data exports, have been well-received. However, there are concerns about how easily the FCA can regulate user journeys once they are off the dashboard.

In terms of opportunities, innovation and engagement are expected to happen off dashboards, with benefits arising from various tools and services. Which also envisions long-term development for dashboards, including the inclusion of accessed pensions, costs, and charges. This would allow for better modeling and transparency, ultimately benefiting customers and providing a more comprehensive service.

Pensions dashboards: Build or Buy?

You already know that there will be multiple pensions dashboards, and why it’s so important to offer your own.

The next step to decide is whether you have the time, tech, resource and expertise to build your pensions dashboard in-house, or if you should partner with a Technical Services Provider like Moneyhub who can do the legwork for you. 

Building your dashboard in-house: The cons

• Higher upfront costs – including training, recruitment, necessary licenses, hardware and many other overheads that will need to be sustained.

• Slower to get started – finding the right people to build your team is incredibly time-consuming. This process will likely take several weeks, and you have to factor in any notice potential employees have to give to their current organisations.

• The regulatory factors - these are incredibly complex. You’ll need to consider:

  • Permissions: Your compliance teams will need to make a very detailed Variation of Permission (VoP) application to the FCA to be a regulated Pensions Dashboard Service (PDS) firm, with evidence demonstrating, for example, how you have considered the Consumer Duty customer understanding outcome.

  • Compliant User Interface (UI): The “front-end” pensions dashboard display that you build must be capable of showing pensions from right across the UK pensions universe, compliant with the FCA PDCOB Handbook rules, the Pensions Dashboards Programme (PDP) Data and Design Standards as well as DWP’s State Pension display standards.

  • Compliant technical integration with ecosystem: Your technologists will need to develop and test detailed technology connections with a) the PDP Central Digital Architecture (CDA) (for the Find process) and b) data providers (for the View process), compliant with the PDP Technical and Security Standards.

  • Ongoing operations, reporting and audit: Once you launch your pensions dashboard, it will need to be continually compliant with the PDP Operational and Service Standards, with ongoing management information reports being produced, compliant with the PDP Reporting Standards and the FCA supervisory requirements, as well as enabling annual audits by an independent external expert party to assess your ongoing compliance with all the various Standards

Building your dashboard in-house: The pros

• Dedication – You’ll have a small team dedicated solely to your project full-time with no competing priorities.

• In-depth knowledge of your business and your customers – Employees will have insight into your business and customer needs, mindset, branding, and vision, informing the way they develop your product.

• Faster sign-offs/approvals – unlike working with a third party, less organisation needs to go into setting up discussions for sign-offs and approvals. These things happen much quicker when you can have an informal chat over lunch or in the meeting room.

• Flexibility – there isn’t a fixed budget or other constraints that come with working with an external partner, so you can spend more time tweaking and modifying your product.

Partnering to build your Pensions Dashboard: The cons

• More coordination required - occasionally, when there’s multiple parties at the table, sign offs or revisions can become more complex.

• Upfront cost - paying a chunk of the project costs up front can initially make partnering look like a more expensive option.

Partnering to build your Pensions Dashboard: The pros

• Extensive expertise & talent under one roof - we bring a unique combination of all the necessary multi-disciplinary expertise required for this complex project including:

  • Regulatory compliance

  • Pensions knowledge (DB & DC)

  • User experience

  • User interface design

  • API development

  • Maintenance

  • Service and support

• De-risk your project - with our Open Finance connectivity you’d be able to show your customers all of their financial assets alongside their pensions, discouraging them to move between apps.

• Plug & Play - rather than using valuable time finding, building. the right team to work on your dashboard, we have an expertly informed team of people ready to get working with you right away.

• We do the testing, so you don’t have to - we’re uniquely advantaged by our consumer money management app as a means for testing, responding and tweaking based on how real users interact with the tech. The results of these tests are then rolled out across our clients’ apps, meaning you’ll have the best, most intuitive product on the market right from the start.

• An Alpha partner of the Pensions Dashboards Programme - the PDP selected us as one of their alpha partners and we were the first commercial dashboard to successfully connect to the central architecture.

• First line support - your users will have access to our front-line technical support team

• Cost effective - the time and resource savings available by partnering with a Technical Services Provider reduce your overall project costs.

• Holistic financial picture - with our Open Banking and Open Finance connectivity you’ll be able to build the most engaging onward journeys for your customers - show your customers all of their financial assets alongside their pensions, discouraging them to move between apps, or power modellers, calculators and consolidation services.

How would it work?

Embedding Moneyhub’s dashboard within your existing app or website.

For optimal customer journeys, both into and back out of your dashboard, you will very likely wish to embed our fully compliant pensions dashboard within your existing app(s) or website(s) which your customers already use and are already familiar with.

There are options for how to achieve this embedding, depending on whether your firm wishes to:

• Be the regulated pensions dashboard service (PDS) firm or

• Rely on Moneyhub’s PDS permissions.

There are pros and cons to these different options, which we’ll come back to in our next update.

For now, all you need to think about is whether you want to do a dashboard, whether building in-house or partnering with a TSP is right for your business.

Watch our webinar: What do consumers want & expect from Pensions Dashboards? →

Should you offer a pensions dashboard?

Offering a pensions dashboard is not mandated. You can always merely direct  your customers away from your app or website, to the Government’s MoneyHelper pensions dashboard.

But, we know that there will be multiple dashboards and that consumers expect pension providers, master trusts, banks and other organisations they already have relationships with to offer a pensions dashboard.

Watch our webinar ‘What do consumers want and expect from Pensions Dashboards?’ →

What will your customers do if you don’t offer a pensions dashboard?

Well, they can either:

• Use the Government’s MoneyHelper dashboard

• Or they can go to the apps and websites of your competitors who are offering dashboards..

What if you only show your customers the pension(s) they hold with you?

In the pensions dashboards age, platforms which only show users the details of one of their pensions, rather than their complete picture, will become increasingly irrelevant to them.

Risks of only offering a limited, or no pensions dashboard:

• Lose customer primacy to your competitors.

• See diminished usage of your app or website by your customers, with weaker relationships and reduced utility / support.

• Leak assets under management to your competitors as your customers consolidate their pensions away from you.

How can you encourage your customers to see yours as the go-to pensions dashboard?

If you offer your own dashboard, you will own your customers’ journeys on your existing app or website. Your customers can find and view their total pension retirement income, across their State Pension and all of their different workplace and personal pensions.

If your dashboard is also within an Open Finance platform where users can see their other assets and finances too, such as savings, investments and mortgages, there’s no need for them to go elsewhere.

The benefits of offering a pensions dashboard

It’s hard not to see the benefits of offering your own pensions dashboard. .

• Develop deeper long-term digital relationships with your customers.

• Better support your customers’ ongoing retirement planning and financial wellness.

• Seamlessly support those of your customers who wish to consolidate pensions thus accelerating the growth of your total assets under management.

The question isn’t if people will use pensions dashboards, it's where they will use them.

So, if you aren’t offering customers a dashboard, they’ll likely look elsewhere for one. This could mean your customers are pushed into building relationships with your competitors.

If you want to maintain those relationships you’ve worked hard to build, offering a pensions dashboard is not an option, it’s a must.

To stay up to date with all things pensions dashboards including upcoming webinars, blogs, and videos, sign up to our dedicated newsletter below.

If you’d like to speak to one of our pensions dashboards experts, get in touch with us by filling in this form.

How many pensions dashboards will there be?

Over the last few months, many pension providers, master trusts, banks and other organisations have come to us for help with their pensions dashboard offering.

Market-leading thinking on dashboards is developing very rapidly. So what does the landscape look like? What do you need to know right now to inform your strategy and secure your first mover advantage?

This is the first in a series of blog posts that aim to equip you with the knowledge you need to get ahead in the dashboards world.

Watch our webinar ‘What do consumers want and expect from Pensions Dashboards?’ →

Who will provide pensions dashboards?

There will be multiple dashboards. To say that people will use the pensions dashboard is a bit like saying someone consumes the news.

Some of us turn on the TV and watch the same channel’s news offering at the same time each day. Some listen to the radio, some check Twitter or Youtube, some even pick up a newspaper. Many of us like to combine sources and mediums.

Much like the news, there will be an array of platforms or sources through which we can access pensions dashboard services. But there’s no spin here - the pensions data on each platform will be exactly the same.

There will be a Government pensions dashboard. The BBC of dashboards, say. This is the MoneyHelper pensions dashboard from the Money and Pensions Service (or MaPS).

But many other dashboards will be available for consumers to use,  with Government policy actively encouraging a landscape of multiple dashboards regulated by the FCA. Much like the news, consumers will expect to be able to access their pension information on apps or websites that they already use (and trust), such as their bank, pension provider or even a money management app like Moneyhub’s. These are collectively referred to as commercial dashboards with regulations officially calling them Qualifying Pensions Dashboard Services (QPDSs). 

Which dashboard will people use?

Only the future will tell us for sure but as we already demonstrated with our news analogy, research, including our own, shows people expect to access their pension information on dashboards across different providers.

Different research to date

Moneyhub’s research:

In 2023, we asked a sample of our users “Which dashboard would you use?”

That makes the split:

Our own rapid consumer research from January 2023 found that 40% of people would use the Government’s dashboard.

Clearly, people understand the benefits of different commercial dashboards located within the app of a trusted brand.

PLSA webinar poll

In March 2022, a PLSA pension scheme webinar audience was asked “Do you think your scheme members would look to use a pensions dashboard provided by…”

ABI consumer research

In 2021, the ABI commissioned BritainThinks to research 4,000 users’ views, split into four groups. 1,000 weren’t shown a dashboard and 1,000 respectively were shown a dashboard provided by the Government, a pension provider and a bank. All 4,000 were asked “Who would be the best provider?”

The group who weren’t shown a dashboard responded:

The group who were shown a Government dashboard responded:

The group who were shown a dashboard from a pension provider responded:

And the group who were shown a dashboard from a major bank responded:

BritainThinks found that consumers consider the Government as a dashboard provider in the first instance, because they intuitively associate the Government with pensions and work.

The Government is also trusted as an impartial entity (compared to a private pension provider) and is expected to hold data on people’s pensions already.

However, BritainThinks survey revealed that people’s perceptions of the safety/suitability, and uptake of different dashboard providers is more likely to be driven by exposure and convenience.

Within the research:

• The group exposed to the test government dashboard were most likely to see the government as the best provider,

• The group exposed to the test bank provided dashboard were most likely to see their own bank as the best provider, and

• The group exposed to the test pension provider dashboard were most likely to see pension providers as the best provider.

So the dashboard provider which consumers saw in the testing was the one they saw as the best.

It’s therefore likely that consumers will stick with the first dashboard they become aware of and use.

Conclusion

There will be multiple commercial dashboards as well as the Government’s impartial MoneyHelper dashboard from MaPS, but all displaying the same pensions data. People expect financial institutions such as banks or pension providers to offer a dashboard.

A minority of consumers expect to use the Government’s dashboard, the majority instead preferring to use a dashboard offered by a trusted pension provider or bank. This is likely down to having an established trust and existing relationship with these brands, as well as the convenience of finding a dashboard within apps they already use.

The uptake of different dashboards will likely be driven by exposure (whose will they see first?) and ease of use.

It’s vital therefore that businesses who want to be among the first to offer a dashboard to their customers start considering the front-end (or, what the dashboard will look like and how people will interact with it) sooner rather than later.

To stay up to date with all things pensions dashboards including upcoming webinars, blogs, and videos, sign up to our dedicated newsletter below.

Finding out what consumers really want from Pensions Dashboards

3 min read: New FCA and PDP consultations have been published on how dashboards must look and feel. We’re engaging with our customers and clients to obtain key feedback on these proposals and examine how they’ll really work for users.

By Richard Smith, Moneyhub Pensions Dashboards Strategy Adviser

It’s no secret that  we’re massive supporters of pensions dashboards here at Moneyhub. We know that millions of consumers want to grow their confidence and gain clarity around their money for their later lives.

We’re an alpha partner to the Pensions Dashboards Programme (PDP) and we’ve shared our alpha dashboard for all to give an early view of how dashboards can help consumers and what they could mean for pension providers. 

But what do consumers really want from a Pensions Dashboard? We’re committing to finding out.

Research with real users

From our extensive Open Banking experience, we know how important it is to seek feedback from real users on key elements of the UX (User Experience). Controls are vital for consumer protection, but they must also allow room for provider innovation to best meet consumers’ needs, so they can grow in confidence with enhanced overall financial wellbeing.

We really want to help ensure pensions dashboards land well for consumers. So, we’re going to ask some real consumers what they think about the FCA’s and PDP’s dashboards proposals.

Working with invited members of Moneyhub’s app user community, we will test consumer reactions to the various design controls being proposed today by FCA and PDP.  We will also test these customer views with our corporate clients. All of this detailed intelligence will feed back into Moneyhub’s consultation responses back to FCA and PDP in February.

The FCA and PDP are shining a spotlight on consumers

Whilst dashboards have been in the pipeline a while, much of the debate has been on scheme compulsion and compliance.

Now though, these two further consultations firmly put the spotlight on a third, and most important, “C” - consumers: 

• FCA are consulting on the draft regulatory framework for pensions dashboards: or, in simpler words, they’re proposing draft rules for how all authorised providers of Qualifying Pensions Dashboard Services (QPDSs) must behave towards consumers.  This covers things like: What criteria must providers meet to get FCA’s permission to operate a QPDS? What must, and mustn’t, QPDS providers do? When can QPDS providers allow dashboard users to export their found pensions information? etc. 

• PDP are consulting on the draft Design Standards for pensions dashboards: In parallel with FCA’s QPDS rules consultation above, PDP is making proposals for how all QPDS providers must display consumers’ pensions.  For example, on the list of users’ found pensions, in what order should they appear?  And how should important contextual messages about the different pension amounts be presented on dashboards?

What next?

FCA and PDP will then review all the feedback they receive and publish final QPDS rules / Design Standards, probably in early Summer 2023.  Moneyhub will then apply to the FCA to become one of the first authorised QPDS providers.  Corporate clients will be able to use this dashboard, standalone or white-labelled, to help their customers see all their pensions together.

We know consumer confidence is low, and consumer confidence in pensions is rock bottom.  Many consumers lack the ability and / or confidence to answer very basic questions about their pensions, such as: ‘What pensions have I got?’, ‘Will I have enough?’ and ‘What can I do?’

Dashboards will revolutionise pensions customer service: enabling consumers to do a secure digital search for all their pensions and then see an indication of their total pension position.  

Users of the Moneyhub dashboard (standalone or white-labelled) will also be able to see their pensions within the wider context of all of their financial assets and liabilities, including investments, savings, property, loans, mortgages, bank accounts, credit cards and more, through Moneyhub’s Open Finance app.

Looking ahead.

Pensions dashboards present a generational opportunity to grow consumer confidence, but only if the mandated controls on, and design of, dashboards works well for consumers of different types.  At Moneyhub, we’ll continue to ensure the voice of the consumer is heard, so that, when launched, dashboards offer consumers a truly useful service, helping them plan for retirement, and enhancing lifelong financial wellbeing.  

Do you want to make sure you're Pensions Dashboards ready? Check out our Pensions Dashboards hub crammed full of handy resources and blog posts or access our sandbox for an idea of what Pensions Dashboards might look like.

If you’d prefer to chat through what dashboards mean for your business, please do get in touch.

Passing on the baton, for us all to get pensions dashboards done

Amongst numerous recent changes in our political leadership, Guy Opperman has handed the Pensions Ministerial baton on to Alex Burghart.

Like Guy, Alex is a keen Pensions Dashboards advocate and that renewed passion is really welcome.  But it’s now more up to industry than Government to get dashboards done, as regulations are finalised.

The Pensions Dashboards Relay

Government passes the baton to industry: The Government originally handed the dashboards baton to industry in March 2016 when the Coalition Chancellor George Osborne said he would ensure the industry designs, funds and launches a dashboard.

Industry hands it back to Government: Industry took up that challenge enthusiastically, with the ABI leading a prototype dashboard project.  The prototype was delivered at Easter 2017, with an accompanying report later that year.  Crucially, the prototype report said that, for dashboards to be successful, Government would need to introduce legislation compelling pension schemes and providers to make their data available digitally for display on dashboards.  Baton passed back to Government!

Government delivers it back to industry: That compulsion request was actually a huge ask, which Guy worked tirelessly to deliver over the last five years.  A Government feasibility study in 2018, followed by a consultation in 2019, led to a Pension Schemes Bill in 2020, enacted in 2021, with secondary legislation being consulted on earlier in 2022.  Very shortly, the Government will publish the final dashboards regulations (and accompanying standards), delivering on industry’s 2017 request for dashboards compulsion.  This finally passes back the baton to us in industry to get dashboards done.

Up to industry to finish the job

Whilst Alex finds his feet, there’s no need for a hiatus on dashboards.  Rather, this now gives leading industry providers the opportunity, or duty even, to become the voice of change and drive better outcomes for consumers.

Industry mustn’t wait.  Dashboards have cross-party support, for good reason: millions of Britons need more control over their futures, and soon.  We should learn from previous initiatives, like Open Banking, where industry grasped the mantel and drove out the change.

Industry’s big providers should be encouraged to join Moneyhub in now testing the standards, and setting the pace for delivering the benefits to the consumers we all serve.

What’s left to do?

So how must industry now step up and deliver dashboards success?  There are three crucial areas:

• Data: Pension providers must comply by connecting up their data to the Government’s central digital architecture or equivalent alternative testing solutions.  This starts with early volunteers this autumn.  Then, from Easter 2023, all data providers must connect, in stages. 

• Consumer experience: At the same time, dashboard providers, such as Moneyhub, must test the most effective ways to display all the connected pensions data to many different consumers of different types, refining the alpha dashboards which are already in place.

• Launch: Remember George? Back in 2016 he said industry must also launch dashboards.  So whilst we’re busy getting all the back-end data connections and the front-end dashboards working correctly, we must also prepare for a highly successful launch to the general public.

Getting dashboards done

Millions of people in Britain will finally be able to see their pensions together.  If they use the Moneyhub dashboard they’ll be able to see their pensions alongside their other finances too.  This will really help grow consumers’ control and confidence, much needed in times of financial stress.
Grateful thanks to Guy for getting us this far. Alex has a tough act to follow but a great opportunity to support the pensions industry as it embraces innovative technologies for the ultimate benefit of consumers.