Four providers have achieved a gold benchmark on open finance functionality as part of Benefit Guru’s third annual Financial Wellness Ratings, which benchmark workplace pension providers who provide open finance technology.

Overall, six providers, Aviva, Mercer, Intelliflo, Scottish Widows, Standard Life and True Potential were benchmarked as providers that offer an open finance functionality.

Of these, Aviva, Intelliflo, Mercer Master Trust and Standard Life were ranked gold, whilst Scottish Widows and True Potential achieved a silver rating. Standard Life and Aviva were also awarded a gold rating overall and across all categories.

Benefits Guru pointed out that, in insurance, open finance is less advanced, although it argued that the potential benefits are mirrored across open banking and open insurance, namely offering providers the ability to view their clients’ financial data including all monthly savings and expenses used as intelligence to ensure members are making their money work as hard as it can for them.

It also highlighted the increasing use of open finance by pensions providers as an indicator for the adoption of innovation by the pensions industry and its integration in financial planning.

Benefits Guru head of workplace research, Jason Green, stated: “Now in its third year, the ratings provide advisers and employee benefit consultants an invaluable detailed overview of the workplace pension market and their offerings.

"It’s exciting to see that providers continue to adapt their proposition to include open finance – which will undoubtedly revolutionise the industry and consumer outcomes.

“Workplace pension providers are increasingly well-placed to help build a financial resilience mindset and helping consumers be more comfortable with their finances.

"Many have the ability to not only build a pension pot, but to help get us there by managing outstanding debt, build emerging cash funds and save for short term goals from holidays to house renovations.”

BenefitsGuru and FTRC founder, Ian McKenna, added: “For open banking to truly succeed. The wider data that is made available needs to be used for positive and constructive purposes in the middle of the cost-of-living crisis families should be able to use this data to inform better financial decisions and take greater control of their finances.

“This can be used to ensure that I’m getting the best possible deal on services like mortgages, insurance both general and life, and to help them find ways that they can genuinely afford to save. Financial wellness services are ideally placed to help Open Banking deliver its full potential.”

The benchmark aims to recognise the growing opportunity and importance of financial insight and improved financial outcomes that has been accelerated by the increased cost-of-living and repercussions on financial planning.

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