Bank to push energy and broadband deals

A BRITISH bank will be the first to offer personalised energy and broadband deals to customers, in a move which could spell the end of shopping around on price comparison websites.

First Direct is testing a smartphone app which trawls a database of thousands of deals to recommend specific products from third-party providers.

Financial institutions are being forced to share customer data so people can see all their money on one screen, in a move that would revolutionise online banking. First Direct’s app will let customers hand over spending and saving data from all their financial accounts, in return for notifications about bespoke deals which could save them money.

The app will analyse customer data to recommend financial products such as mortgages and loans, as well as gas and electric tariffs, or broadband and television packages. The hope is that consumers will then buy the deals by clicking on them. The app, which will be powered by financial technology firm Bud, will charge providers a fee if people click and buy, which will be split between Bud and First Direct.

Last night, consumer groups warned that banks selling poor deals would rapidly damage their reputation.

James Daley, director at consumer group Fairer Finance, said: “This could really be a game changer which could take the hassle out of shopping around. But the temptation will be for banks to maximise potential for themselves. Prioritising this over helping people save money would be the quickest way for them to destroy their reputation.”