Open banking is a secure and simple way to help you understand your finances more effectively – from borrowing to savings, from credit scores to switching – and inform your financial decision-making.  

It’s also another way to pay bills, and for goods and services as an alternative to credit and debit cards, Direct Debits and standing orders.  

How does it work? 

Your bank account holds a lot of information about how much you earn, what you buy, your regular bills – even how much you spend at the supermarket every week. Before open banking, that information would simply be held by your bank or sit within unopened bank statements.  

By allowing you to securely share that information with regulated companies, you can find apps, products, and services to help you take control of your finances.  

Having a clear view of your finances can help you manage your money more confidently, get better value, and support your financial wellbeing. 

You’re always in control of what data you share, who you share it with – and you can stop sharing it at any time.  

Help with cost of living challenges

Our handy guide explains how open banking apps and services can help you understand your finances, budget better, access affordable credit, build a regular savings habit, and more.

Read our guide

Open banking apps in action…

Building your savings
Help to manage debt
Find cost-effective lending

How open banking can help you


We answer your questions about how open banking works.

Am I automatically opted in to open banking?  

No. You’ll only use open banking if you give your explicit consent to a regulated app or website. It’s always your choice. 

Which organisations offer open banking as a way to pay? 

A growing number of businesses and public sector organisations now include open banking as a payment option. 

For example, HMRC offers it as a way to pay self-assessment tax, corporation tax, VAT and other taxes. You may have seen it on your self-assessment form as ‘Pay by bank account (new)’. You can see how it works here.

Some energy providers, water companies, and local authorities also offer it as an option to pay your bill. You can even use open banking when you buy or sell a car through some online car retailers. 

If you make a payment by open banking, it’s sometimes referred to as ‘Pay by link’, ‘Bank Pay’, ‘Pay with Bank Transfer’, or ’Instant bank transfer’. 

My utilities company has asked me to share my data via open banking so they can see my ability to pay my bill. Is this okay? 

A growing number of energy and water providers use open banking data to help assess a customer’s ability to pay their bill, and in some cases, move them on to a more affordable tariff. 

For example, if a customer calls the energy company, and is eligible to go on the open banking journey, the team can send out a secure link which allows it to see a snapshot of the customer’s banking data at that specific time. This can enable an immediate switch to the lower tariff while they are on the phone.