Two sides of the same problem: It is time-consuming and complicated to obtain a reliable overview of personal finances - from pension entitlements and insurance policies to bank accounts, deposits and real estate. Consequently, many households fail at retirement planning or preparing for financial consequences of job loss or divorce. There is still a large gap between private banking and Excel sheets. On the other hand, research and political consulting lack granular real-time data on income, consumption, and savings of private households. This means that urgent decisions lack a solid evidence base, implying a two-fold potential for a digital data trustee of private financial data.
On the basis of EuroDaT, the Goethe University is building a household barometer for private financial data with state-of-the-art GAIA-X technology. This provides novel value-added services for private households, whilst fully respecting data protection and sovereignty, encompasses maximal trustworthiness and prohibits incentive conflicts.
The operating principle: Using verified APIs to banks and insurance companies, households can securely and conveniently upload their financial data (including accounts, deposits, pension products, real estate) to the data trustee, where they are analysed and processed for use. Our mission is to inform households just-in-time on financial decision making based on complete data and customised AI-based benchmarks, enabling more appropriate financial decisions. At the same time, EuroDaT will facilitate novel research studies based on real-time data on the economic situation of private households combined with field experiments. More specifically, the data trustee will provide users with the option to revocably donate pseudonymised data. In this way, we promote research into the financial behaviour of private households and, beyond that, more evidence-based consumer and economic policy.
The use case makes use of the relevant preliminary work on the Pension Cockpit at Goethe University.
Goethe University – Prof. Andreas Hackethal
ZEVEDI, d-fine, TechQuartier. Associated: Leibniz Institute SAFE and Center for Financial Studies