Category: Top

Every one of us has a unique financial situation, and we all have financial goals and dreams that we’re pursuing. Whether it’s a certain savings goal or an improved credit score, we all have areas in which we would like to improve ourselves financially. Unfortunately, sometimes things happen that are outside of our control, and that can derail those financial plans pretty quickly. A car accident or repairs, an unexpected medical expense, and home or property damage can all shift your priorities pretty quickly. When things like that pop up, sometimes those financial goals and dreams have to go on the backburner. 

Life happens, and that’s okay.  

We’ve all faced unique circumstances that have ultimately shaped the status of our individual finances. And if you’ve faced setbacks and want to start back on the road towards realising those dreams and goals you once had, you’ll need a unique set of advice. That’s why we developed your key indicators. 

As a Finwell member, you will have access to your key indicators. This feature lets you view a customised list of flags, or indicators, that will help give you a better overall picture of your financial health. We’ll show you the positive indicators, along with the red flags that have negatively impacted your financial health. And for every red flag we’ve detected, we’ll also give you detailed, personalised steps you can take to eliminate those red flags! 

The best part is that as you cultivate healthy financial habits over time, you’ll start to eliminate those red flags, and you can watch your financial health score rise over in the financial health indicator feature! Life happens, but with Finwell, you can start your personalised journey to get back on track towards reaching your financial goals!  

Mastering your personal finances can be a daunting task, especially if you’re doing it on your own. With so many ways to measure financial wellness, from credit scores and reports to the number in your savings account, there has to be a better way to consolidate this information and determine how your overall financial health is doing.

That’s why we’ve teamed up with AccountScore to provide our customers with a suite of personal finance tools and scores, including the Financial Health Score. This personalised score is calculated just for you using our Financial Health Indicator (FHI for short). This online tool analyses your financial habits and then uses that information to rate your overall financial health, which is displayed on a scale of 100-900. This is your personalised Financial Health Score, and it helps you to gain a better overall understanding of your financial health at a glance! 

How does it work?

Your Financial Health Score is similar to a Credit Score, but it’s calculated differently. Credit Scores don’t take your account activity (like your spending and saving habits) into account. Your Financial Health Score does. 

How you manage your money is a big factor to take into consideration when you’re discussing someone’s financial health. That’s one of the criteria that the FHI uses in its calculation. Though the use of open banking, the FHI can get a picture of your spending and saving habits by analysing your monthly payments, and credit card expenditures, and more. Using that information, the FHI not only can show you your Financial Health Score, but also personalised steps you can take today to raise it! 

So how can this be useful?

The FHI rates a person’s overall financial health, and the subsequent likelihood that they will be able to make credit payments based on their bank account activity. This is important because many financial institutions offering loans or credit take these very same factors into account when deciding whether or not to enter into credit agreements with an individual. That’s why we calculate the Financial Health Score using the same data that lenders do. Which ensures that our customers see a snapshot of how lenders may perceive their financial health before they start applying for credit. That way, our customers know that they have a better chance of securing credit when they start the application process! 

Whether you’re trying to see how lenders and other financial institutions may perceive your overall financial health, or just trying to improve your financial habits, Finwell is here for you.

Open Banking is a term not many people are familiar with; even if they have, many people have negative perceptions of what it is and how it’s used. The truth is that Open Banking is a wonderful tool that empowers organisations like Finwell to offer useful services to their customers. Without it, we couldn’t do what we do. But what is Open Banking, really? It may seem confusing at first, but we’re here to break it down for you. 

So let’s start by defining Open Banking in simple terms. At its core, Open Banking is a secure way for service providers to access the financial account data of their customers in order to provide them with regulated products and services. Starting to make more sense? Let’s use an example from the real world to show you how Open Banking is used in everyday life.

Let’s say you’re applying for a loan. The lender needs to consider more than just your credit score in order to determine whether or not you’re eligible for the loan, right? So instead of asking for separate documents in order to verify the financial information needed in the application process, they can request access to view the necessary information from your bank. All you have to do is give your consent and connect your account with the lender, and you’re in business! Your bank will then provide the lender with the information they need, all through the sanction and security of your bank. That’s the process of Open Banking in action! 

So how common is this practice? And How secure can it really be?

Open Banking is actually more common than it may seem. All UK-regulated banks are required to let you share your financial data such as your spending habits, regular payments, and companies you use (basically your bank, credit card, or savings accounts) with authorised providers that offer useful financial or budgeting apps, as well as online tools or even other banks – just so long as you give your permission. These authorised providers then use that information acquired through Open Banking practices to better serve you financially, such as through offering more options for loans, lower APR rates, and much more. So in short, it’s very common, and quite secure! 

But how exactly does Finwell use Open Banking?

Finwell uses Open Banking to gain access to the financial information in your current account, such as incoming and outgoing monies to gauge your spending habits from month to month. We then use this information to get a better overall understanding of your financial standing. We then use this information to calculate your financial health score! This is also how we are able to give you personalized tips and tricks based on your individual circumstances. So as you can see, Open Banking isn’t a scary thing, it’s at the heart of what we do, and it empowers us to help our customers take their first steps towards better financial health. 

For more information on open banking, check out https://www.openbanking.org.uk/