Open Banking FAQs

Open Banking is a secure way for you to give providers access to your financial information. It allows you to share your financial data safely and securely with third-party providers through APIs (Application Programming Interfaces). This sharing of data enables innovative financial products and services to be developed, giving you more options and control over your finances.

Open Banking works by allowing you to authorise third-party providers to access your financial data held by banks or financial institutions. This access is facilitated through secure APIs, which ensure that your data is shared in a safe and controlled manner. You can choose which data you want to share and for how long, giving you full control.

Yes, Open Banking is designed with security and privacy in mind. All data sharing is done through secure APIs, which use encryption and authentication mechanisms to protect your information. Additionally, Open Banking providers are regulated and monitored to ensure compliance with strict security standards and data protection laws.

• Enhanced financial transparency: Access to your financial data allows you to better understand your spending habits and financial health.
• Personalised financial products and services: Third-party providers can use your data to offer tailored products and services that meet your specific needs.
• Improved financial management: Open Banking tools and apps can help you budget, save money, manage your finances more effectively – helping to protect and grow your financial fitness.
• Increased competition: Open Banking promotes competition among financial providers, leading to better products, services, and pricing for consumers, helping you to find the cheapest products.

Open Banking is not mandatory, but it offers benefits to those who choose to participate. You have the option to opt in or opt out of Open Banking, depending on your preferences.

No. Opting into Open Banking requires your explicit consent, so you’ll always be in control.

Yes, as Open Banking isn’t mandatory, you have full control over who has access to your Open Banking information. You can either opt out through the website or the app which you originally gave permission to access your details. Or alternatively, you can instruct your bank or building society to stop sharing your data with a particular firm.

Firms which provide Open Banking facilitates must be registered with Financial Conduct Authority (FCA). The firm also must comply with the Payment Services Regulations (2017), this regulation outlines the requirements around sharing of data, customer identification and communication. 

Whilst Open Banking does require customers to have their own bank account, not all banks are currently signed up to the Open Banking Directory. Initially this service was offered by the 9 of the biggest banks in the UK. This number has since increased with more and more banks and building societies offering an Open Banking solution.

No, unfortunately not. The premise of Open Banking is the sharing of data, for this to happen you must be using online banking.

Shared data can include any of the following, balance(s) of the account and the associated transaction history. Names on the account, regular Direct Debits and payments; and your incomings and outgoings.