So what's Open Banking?
Open Banking has been designed to offer you greater control of how you manage your money by enabling you to share information with third parties who can provide a range of services such as seeing your accounts in one place, budgeting and comparison tools and much more.
There are two core themes to Open Banking:
- Account Information Sharing enables you to benefit from services provided by third party providers, such as price comparison sites to check if there might be a better account for you, or to see all your different account balances and transactions in one place.
- Making Payments enables you to send money directly from your account using a third party provider.
Additionally, a new payment method has been introduced (Card Based Payment Instrument Issuer) which allows a third party provider to issue you with a card which you link to the payment account of your choice. You can make payments with that card and the third party provider will ask us for confirmation that you have funds in your account to cover the payment. We will only respond with a yes or no answer. If the third party provider wants to access funds in your accounts, they will need to make separate arrangements with you for this.
There are also two methods by which third parties may choose to access your account:
- Application Programming Interface (API) based access where the third party provider will ask you for your consent and you'll be securely redirected to our online authentication process. This will be similar to the way you log on to our Online Banking services. If you’re using our Mobile Banking app you'll able to use your biometric (face or touch) to authenticate, where available. When the process is complete we will send the requested information to the third party provider or make the payment.
- Third parties may access your accounts similarly to logging on to Online Banking. They will log on using your Online security credentials, which they will need to request from you each time. You should be aware that they’ll have access to all the information and services you see online in relation to your accounts. This includes the account summary, payee information and balance data. All third parties that access your information must comply with data protection laws and must be registered or authorised with the Financial Conduct Authority (FCA). They must only access information and make payments that you have consented to.