What is Open Banking?
You’ll already be familiar with current account statements showing how much money you have in your account and payments in and out of your account. Open Banking enables you to share this ‘account information’ with other third party providers who will consolidate it to be able to offer you a better deal. Only regulated third party providers will be able to provide these Open Banking services.
It also offers a new way to make online payments straight from your current account through a third party provider’s website or app. You will need to consent to use either of these services directly with the third party provider.
What are the advantages of Open Banking?
- Making it easier to move, manage and make more of your money – so you can find the best deal for you
- Giving you access to more competitive, tailored products and services – based on your actual account data
- Putting you in control of your data – you can share your information with other banks and third-party providers
Who can use Open Banking?
To use Open Banking you will need to have a current account and be registered for your bank’s online or mobile banking service.
For businesses, you will need a business current account and must be registered for your bank’s online business banking service.
How does Open Banking work?
- You’ll have to give your consent to a third party provider if you want them to access your personal or business current account information or request for a payment to be made.
- If you choose to do this, you’ll be directed to your existing bank or building society’s online banking login page where you will log in securely to share your account information or allow a payment to be made from your account.
- Once you’ve authorised your bank to securely share the information or make the payment, the app or website will only be able to use your information for the agreed purpose.
How can I use Open Banking securely?
Open Banking is safe and secure. You have control of your data: you decide if you want to share it, you decide what data you want to share and you decide what it can be used for.
Your data is encrypted and shared securely. All usage of your information is tracked and you should be able to withdraw your consent at any time.
Every provider who uses Open Banking to access data must be regulated by the FCA in the UK, or the national competent authority in other European countries.