How does Open Banking work?
Open banking will mean reliable, personalised financial advice, tailored to your particular circumstances delivered securely and confidentially.
To provide tailored advice banks and other financial service providers need to know how you use your account. At the moment, to get personalised advice, you have to hand over your confidential banking information to price comparison websites.
Open banking will use APIs (Application Programming Interfaces) to share customer information securely. This tried and trusted technology is used by many well known online brands, such as Uber providing information about the location of a taxi.
Third party providers will be able to use open banking APIs to see your transaction information to tell you what you might save when considering the current account best suited to you. Or if you run a small business you could find the best deals for your business accounts and loans.